Account Receivables

Account Receivables
Posted Mon, 12/29/2008 - 11:56 by Anonymous
Oracle Receivables is a full-function accounts receivable system that allows you to manage your customer base, invoice and payment processes effectively. Oracle Receivables provides four integrated workbenches that you can use to perform most of your daytoday Accounts Receivable operations. You can use the Receipts Workbench to perform most of your receiptrelated tasks and the Transactions workbench to process your invoices, debit memos, credit memos, onaccount credits, chargebacks, and adjustments. The Collections Workbench lets you review customer accounts and perform collection activities such as recording customer calls and printing dunning letters. The Bills Receivable Workbench lets you create, update, remit, and manage your bills receivable.
Companies sell their products either for cash (immediate payment in the form of a check, credit card, or notes and coins) or as invoiced sales on credit with specific payment terms. Invoiced sales create a
receivable in the balance sheet (General Ledger), which represents the money due to the company. The financial health of a company depends on keeping track of its customers and ensuring prompt collection of the money owed. 1. Receivables produces three legal documents to notify customers of their obligations:
An invoice is usually sent shortly after a sale has been made. It states the obligation and provides details. A statement is a summary of the transactions over a period of time. It shows all open transactions. It may also show payments made within the period. A dunning notice informs the customer of past-due obligations.
Companies can choose not to use both statements and dunning notices. However, because they are legal documents, most companies retain the ability to produce all three document types in a paper format. In the interests of efficiency, however, many now send invoices by EDI, fax, or e-mail, and they may agree with established customers to rely exclusively on electronic documents. 2. The customer can choose to pay the invoice in a variety of ways: by check or bank transfer, direct debit, or bill of exchange. When payment is received from the customer, you apply the cash to the customer account, reducing the amount owed and generating journals in GL. A partial payment will reduce the amount owed, but not to zero. The amount owed by each customer can be seen on the Aging Report and Account Detail screen.
1. Setups 2. Customer
3. Transaction 4. Receipt & Revenue Management 5. Bills Receivable 6. Collection 7. Accounting 8. TAX 9. Report/etc iReceivables Using iReceivables customers get immediate secure access to their account details over the Internet. They can print copies of invoices or credit memos, dispute bills they don't agree with, and review their current account balance. Access is available to anyone with a Web browser and the appropriate security details. All transactions accessible via iReceivables are protected by Oracle's standard application security as well as user authentication and the ability to define and limit user access
Setting Up Customer & Party Transactions Receipts Bills Receivable Collections Period Closing Process
Setting Up
Posted Thu, 08/06/2009 - 12:54 by Anonymous
Payment terms @ http://www.oracleug.com/user-guide/order-management/payment-terms Accounting Rules & Invoicing Rule @ http://www.oracleug.com/user-guide/order-management/setup-steps-vi-payme...
AutoAccounting Transaction Type Transaction Batch Sources Standard Memo Lines Auto Invoice Approval Limits Receipt Sources Receipt Classes & Payment Methods
RemitTo Addresses Banks AutoCash Rule Sets Application Rule Sets Receivables Activities Distribution Sets Aging Buckets Collectors Key FFs in AR System Options Tax Basics, Code and Group
Home Account Receivables Setting Up
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AutoAccounting
Define AutoAccounting to specify how you want Receivables to determine the general ledger accounts for transactions that you enter manually or import using AutoInvoice. Receivables creates default accounts for revenue, receivable, freight, tax, unearned revenue, unbilled receivable, finance charges, bills receivables accounts, and AutoInvoice clearing (suspense) accounts using this information. When you enter transactions in Receivables, you can override the default general ledger accounts that AutoAccounting creates. You can control the value that AutoAccounting assigns to each segment of your Accounting Flexfield, such as Company, Division, or Account. You must define AutoAccounting before you can enter transactions in Receivables. Suggestion: If you use the multiple organization support feature, you can set up AutoAccounting to derive the Product segment of your Revenue
account based on inventory items. To do this, define the Product segment of your Revenue account to use Standard Lines and specify a Warehouse ID when entering transactions.
1. AutoInvoice Clearing: The clearing account for your imported transactions. Receivables uses
the clearing account to hold any difference between the specified revenue amount and the selling price times the quantity for imported invoice lines. Receivables only uses the clearing account if you have enabled this feature for the invoice batch source of your imported transactions.
2. Receivable: The receivable account for your transaction. 3. Revenue: The revenue and finance charges account for your transaction. 4. Freight: The freight account for your transaction. 5. Tax: The tax account for your transaction. 6. Unbilled Receivable: The unbilled receivable account for your transaction. Receivables uses
this account when you use the Bill In Arrears invoicing rule. If your accounting rule recognizes revenue before your invoicing rule bills it, Receivables uses this account.
7. Unearned Revenue: The unearned revenue account for your transaction. Receivables uses this
account when you use the Bill In Advance invoicing rule. If your accounting rule recognizes revenue after your invoicing rule bills it, Receivables uses this account.
8. Bills Receivable: The bills receivable account for your transaction. Receivables uses this
account when you exchange transactions for bills receivable.
9. Factored Bills Receivable: The factored bills receivable account for your bills receivable
transactions.
10. 11.
Remitted Bills Receivable: The remitted bills receivable account for your bills
receivable transactions. Unpaid Bills Receivable: The unpaid bills receivable account for your bills receivable
transactions.
For each segment, enter either the table name or constant value that you want Receivables to use to get information. When you enter an account Type, Receivables displays all of the segment names in your Accounting Flexfield Structure. Segments include such information as Company, Product, Department, Account, and SubAccount. Receivables lets you use different table names for different accounts. Choose one of the following table names:
1. Bill To Site: Use the billto site of the transaction to determine this segment of your revenue,
freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue account.
2. Drawee Site: Use the drawee site table to determine this segment of your bills receivable,
factored bills receivable, remitted bills receivable, and unpaid bills receivable account.
3. Remittance Banks: Use the remittance banks table to determine this segment of your factored
bills receivable and remitted bills receivable account.
4. Salesreps: Use the salespersons table to determine this segment of your revenue, freight,
receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue account. If you choose this option for your AutoInvoice clearing, tax, or unearned revenue accounts, Receivables uses the revenue account associated with this salesperson. If you choose this option for your unbilled receivable account, Receivables uses the Standard Lines: Use the standard memo line or inventory item on the transaction to determine this segment of your revenue, AutoInvoice clearing, freight, tax, unbilled receivable, and unearned revenue account. If you choose this option for your AutoInvoice clearing, freight, tax, unbilled receivable or unearned revenue accounts, Receivables uses the revenue account associated to this standard memo line item or inventory item. If the transaction has a line type of LINE with an inventory item of freight (FRT), AutoAccounting uses the accounting rules for the freight type account rather than the revenue type account.
5. Taxes: Enter this option to use tax codes when determining your tax account. 6. Transaction Types: Use the transaction types table to determine this segment of your revenue,
freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue account, and of your bills receivable, factored bills receivable, remitted bills receivable, and unpaid bills receivable account. If the transaction has a line type of LINE with an inventory item of freight (FRT), AutoAccounting uses the accounting rules for the freight type account rather than the revenue type account.
Transaction Type
Use transaction types to define the accounting for the invoices, debit memos, credit memos, commitments(Guarnatee, Deposit), chargebacks, onaccount credits, and bills receivable you create in Receivables. Transaction types also determine whether your transaction entries update your customers balances and whether Receivables posts these transactions to your general ledger. 1. If AutoAccounting depends on transaction type, Receivables uses the general ledger accounts that you enter here, along with your AutoAccounting rules, to determine the default revenue, receivable,
freight, tax, unearned revenue, unbilled receivable, finance charges, and AutoInvoice clearing accounts for transactions you create using this type. 2. For bills receivable, the accounts that you enter here determine the bills receivable, unpaid bills receivable, remitted bills receivable, and factored bills receivable accounts for a bill receivable. 3. You can associate transaction types with your invoice sources in the Transaction Sources window to speed data entry in the Transactions and Credit Transactions windows. Active transaction types appear as list of values choices in the Transactions, Reverse Receipts, Credit Transactions, and Transaction Sources windows, and for bills receivable in the Bills Receivable and Receipt Classes windows. 4. You should define your transaction types in the following order:
credit memo transaction types invoice, debit memo, and chargeback transaction types bills receivable transaction types commitment transaction types - Guarantee, Deposit
5. To be able to void a debit memo, credit memo, onaccount credit or invoice, define a Void transaction type with Open Receivables and Post to GL set to No. Then, as long as there is no activity against the transaction and it has not been posted to your general ledger, you can make it invalid by simply changing the transaction type to Void. Define a transaction type Navigate to the Transaction Types window. 1. Enter a Name and Description for this transaction type. 2. Enter a Class for this transaction type. Choose from the following classes: Invoice, Chargeback, Credit Memo, Debit Memo, Deposit, or Guarantee. If you choose Deposit or Guarantee, Receivables sets Open Receivable and Post to GL to Yes, Allow Freight, Tax Calculation, and Allow Overapplication to No, Creation Sign to Positive Sign, and Natural Application Only to Yes 3. Enter the payment Terms to use for transactions with this transaction type. 4. If this transaction types class is not Deposit or Guarantee, indicate whether you want transactions with this type to update your customer balances by checking or unchecking the Open Receivable box. If Open Receivable is set to Yes, Receivables updates your customer balances each time you create a complete debit memo, credit memo, chargeback, or onaccount credit with this transaction type. Receivables also includes these transactions in the standard aging and collection processes. If you are defining a void transaction type, set Open Receivable to No.
Suggestion: You can use the Open Receivable option to implement an approval cycle for any temporary or preliminary debit memos, credit memos, onaccount credits, chargebacks, and invoices that you may use in your business. For particularly sensitive debit memos, credit memos, onaccount credits, chargebacks, and invoices that you may want to review, you can define a transaction type called Preliminary with Open Receivable set to No. This transaction type does not update your customer balances. When you review and approve the item, you can then change the transaction type to Final (a transaction type that you define with Open Receivable set to Yes) which will update your customers balances. 5. To be able to post transactions with this type to your general ledger, check the Post To GL box. The default is the value you specified for the Open Receivables option. This box must be checked if the class is Deposit or Guarantee. If you are defining a void transaction type, do not check this box. 6. Choose a Transaction Status of Open, Closed, Pending, or Void. Use these statuses to implement your own invoice approval system. Enter Void to void debit memos, onaccount credits or invoices to which you assign this transaction type.
1. To allow freight to be entered for transactions with this transaction type, check the Allow Freight box.
2. To let Receivables calculate tax for transactions with this transaction type, check the Tax Calculation box. If you do not check this box, the Tax Code field in the Lines window will not be required and Receivables will not perform tax calculations or create tax accounting entries for transactions with this transaction type (this is also true for transactions in Oracle Order Management and Oracle Sales and Marketing). 3. Choose a Creation Sign. The default is Positive Sign for transaction types with a class of either Guarantee or Deposit. If you are using the Cash Basis accounting method, your transactions creation sign must be either Positive Sign, Negative Sign, or Any Sign. You cannot update this field after you enter transactions with this type. 4. If this transaction types class is not Deposit or Guarantee and you want to restrict the direction in which items with this transaction type can be updated by applications entered against them, check the Natural Application Only box. If you check this box, Receivables sets Allow Overapplication to No. You cannot update this option after you save this transaction type. 5. If this transaction types class is not Deposit or Guarantee, and you did not check the Natural Application Only box, choose whether to Allow Overapplication against items with this transaction type by checking or unchecking this box. If you check this box, Receivables sets Natural Application to No and you cannot update it after you save this transaction ype. If you use the Cash Basis accounting method, the default value is No and you cannot change it. Account 1. Enter the Receivable Account for transactions with this transaction type. Receivables uses this information, along with your AutoAccounting definition, to determine the receivable accounts for transactions with these types. Receivables creates a receivables transaction record using this account so you can transfer to your general ledger and create a journal entry if Post To GL is Yes for this transaction type. 2. Enter a Revenue Account for transactions with this transaction type. Receivables skips this field if Allow Freight is set to No. Receivables uses this information, along with your AutoAccounting definition, to determine the revenue account for transactions with this transaction type. 3. If this transaction types class is Invoice or Credit Memo, enter an Unbilled Receivable Account. When you use the Bill In Arrears invoicing rule, Receivables uses this information, along with your AutoAccounting definition, to determine the Unbilled Receivable account for transactions with this transaction type. 4. If this transaction types class is Invoice or Credit Memo, enter an Unearned Revenue Account. Receivables uses this information, along with your AutoAccounting definition, to determine the unearned revenue account for transactions with this transaction type. Receivables only uses this account when your transactions invoicing rule is Bill In Advance.
5. Enter a Freight Account for transactions with this transaction type. Receivables uses this information, along with your AutoAccounting definition, to determine the freight account for transactions with this transaction type. Receivables skips this field if this transaction types class is Deposit or Guarantee or if Allow Freight is set to No. 6. If this transaction types class is Invoice, Credit Memo, or Debit Memo, enter a Tax Account. Receivables uses this information along with your AutoAccounting definition to determine the tax account for transactions with this transaction type. 7. If this transaction types class is Invoice or Debit Memo, enter a Clearing Account for transactions with this transaction type.Receivables uses this account to hold any difference between the revenue amount specified for the Revenue account and the selling price times the quantity for imported invoice lines. Receivables only uses the clearing account if you have enabled this feature for transaction sources that you use for your imported transactions.
Transaction Batch Sources

Batch sources control the standard transaction type assigned to a transaction and determine whether Receivables automatically numbers your transactions and transaction batches. Reference Field default value for a transaction is also specified in a transaction batch source. For imported transactions we need to specify AutoInvoice, Customer Information, Accounting Information, Other Information and Sales Credit. Active transaction batch sources appear as list of values choices in the Transactions, Transactions Summary, and Credit Transactions windows, and for bills receivable in the Bills Receivable and Bills Receivable Transaction Batches windows. You can define two types of transaction batch sources:
Manual: Use manual batch sources with transactions that you enter manually in the Transactions and Transactions Summary windows, and for bills receivable transactions. Imported: Use imported batch sources to import transactions into Receivables using AutoInvoice.
You can make a batch source inactive by unchecking the Active check box and then saving your work. Receivables does not display inactive transaction batch sources as list of values choices or let you assign them to your transactions. Suggestion: If you have installed multiple organization support (multiorg), define an imported batch source with the
same name in each organization (these sources can have the same or different settings). This enables you to import order lines that belong to different organizations in Oracle Order Management into Receivables. Bills receivable batch sources: After you define batch sources for bills receivable, enter a batch source in the profile option AR: Bills Receivable Batch Source.
To define a transaction batch source: Navigate to the Transaction Sources window. 1. Enter a unique Name and a Description for this transaction source. 2. Enter a Type of Manual or Imported. For bills receivable batch sources, enter Manual. 3. If this is a Manual source and you want to automatically number new batches you create using this source, or if this is a Manual source for bills receivable and you want to generate bills receivable automatically, check the Automatic Batch Numbering box and enter a Last Number. For example, to start numbering your batches with 1000, enter 999 in the Last Number field. If you are defining an Imported transaction batch source, Receivables automatically numbers the batch with the batch source name request ID. 4. To automatically number new transactions you create using this source, check the Automatic Transaction Numbering box and enter a Last Number. You can use automatic transaction numbering with both Imported and Manual sources.
Note: For bills receivable transaction batch sources, you must use the Automatic Transaction Numbering box and Last Number field to number bills receivable generated automatically. If you are using a bills receivable creation payment method that has Inherit Transaction Number set to Yes, the bill receivable number inherits the transaction number when there is a onetoone relationship between the exchanged transaction, but uses Automatic Transaction Numbering when more than one transaction is assigned to a bill. Note: Receivables automatically updates the Last Number fields, so you can review this batch source later and see the last transaction number that was generated (note that this number is only an approximation due to caching). 5. To use the same value for both the document number and the transaction number for transactions assigned to this source, check the Copy Document Number to Transaction Number box (optional). Suggestion: If your application uses Gapless document sequences, check this box if you require gapless transaction numbers. Checking this box ensures that transaction numbers are generated sequentially and there are no missing numbers. 6. Enter the Standard Transaction Type for this batch source. When you choose a batch source during transaction entry, this is the default transaction type. You can define new transaction types in the Transaction Types window. 7. To number your credit memos created against invoices and commitments with this source differently than the invoices or commitments they are crediting, enter a Credit Memo Batch Source. Before you can assign a credit memo batch source, you must first define your credit memo batch sources using this window. If you do not specify a credit memo batch source, Receivables enters the invoice or commitment batch source here.
AutoInvoice Processing Options Other Transaction Source tab details
Home Account Receivables Setting Up Transaction Batch Sources
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AutoInvoice Processing Options
1. Specify how you want AutoInvoice to handle imported transactions that have Invalid Tax Rates. An invalid tax rate is one in which the imported transactions tax rate does not match its tax code. Correct if you want AutoInvoice to automatically update the tax rate that you supplied to the one that you defined previously for the tax code. Enter Reject if you want AutoInvoice to reject the transaction. 2. Specify how you want AutoInvoice to handle imported transactions with Invalid Lines by entering either Reject Invoice or Create Invoice. 3. Specify how you want AutoInvoice to handle imported transactions that have lines in the Interface Lines table that are in a closed period. To have AutoInvoice automatically adjust the GL dates to the first GL date of the next open or future enterable period, enter Adjust in the GL Date in a Closed Period field. Enter Reject to reject these transactions.
4. Enter a Grouping Rule to use for a transaction line (optional). If you do not enter a grouping rule, AutoInvoice uses the following hierarchy to determine which rule to use:
The grouping rule specified in the Transaction Sources window for the batch source of the transaction line. The grouping rule specified in the Customer Profile Classes window for the billto customer and billto site of the transaction line. The grouping rule specified in the Customer Profile Classes window for the billto customer of the transaction line. The default grouping rule specified in the System Options window.
5. Check the Create Clearing box if you want AutoInvoice to require that the revenue amount for each transaction line is equal to the selling price times the quantity specified for that line. Use this option to distribute revenue on an transaction in an amount that is not equal to the transaction line amount. If you check this box, AutoInvoice puts any difference between the revenue amount and the selling price times the quantity for a transaction into the AutoInvoice Clearing account that you have defined. Otherwise, AutoInvoice requires that the revenue amount be equal to the selling price times the quantity for all of the transactions it is processing. Define your clearing account in the Automatic Accounting window. 6. Indicate whether sales credits can be entered for transactions using this source by checking or unchecking the Allow Sales Credit box. This option and the Require Salesreps option in the System Options window determine whether sales credits are optional or required. Home Account Receivables Setting Up Transaction Batch Sources
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Other Transaction Source tab details

Standard Memo Lines

Standard memo lines are lines that you assign to a transaction when the item is not an inventory item (for example, Consulting Services). You can assign memo lines to debit memos, onaccount credits, debit memo reversals, chargebacks, commitments, and invoices. Receivables displays your standard memo lines as list of values choices during credit memo entry in the Credit Transactions window and during invoice entry in the Lines window. When you create chargebacks and debit memo reversals, you can either use the standard line that Receivables provides or enter your own. You can create an unlimited number of standard memo lines. If AutoAccounting depends on standard line items, Receivables uses the revenue account that you enter here along with your AutoAccounting setup to determine the default revenue, freight, AutoInvoice Clearing, Tax, Unbilled Receivable, Unearned Revenue, and Receivable accounts for invoices with this line item. Warning: When you enter a standard memo line in the Lines window, place the cursor in the Description field and then use the list of values to select a memo line. If AutoAccounting is based on Standard Lines and you type or copy the memo line information, Receivables will not generate the proper accounting entries for this line when you save.
Receivables lets you enter tax code, unit list price, and unit of measure information for each standard memo line. You can also specify a standard invoicing and accounting rule for each standard memo line.
Auto Invoice
Posted Fri, 08/07/2009 - 09:42 by Anonymous
Define the following:
Transaction flexfields
Transaction Batch Source
AutoInvoice system options
AutoInvoice Line Ordering rules AutoInvoice Grouping rules
Grouping Rules AutoInvoice Line Ordering Rules
Grouping Rules
Grouping rules specify attributes that must be identical for lines to appear on the same transaction. Define grouping rules that AutoInvoice will use to group revenue and credit transactions into invoices, debit memos, and credit memos.
1. Grouping rules include mandatory attributes which are always included in all grouping rules, and optional attributes which may be included in a grouping rule. Optional attributes may be added to the mandatory attributes to create new grouping rules. To be included in a group a transaction must always match on all of the mandatory attributes as well as on all of the optional attributes included in a grouping rule. All attributes of the Transaction Flexfield are optional within a grouping rule, and you can assign these attributes as optional grouping characteristics in the Grouping Rules window. Required attribute examples Bill-To Address, Currency, GL Date & Primary salesperson
Optional attribute examples Accounting rule, Sales Order, Tax Code Note: The Grouping Rules window only displays the optional attributes included in a grouping rule. This window does not display any mandatory grouping attributes. The mandatory attributes are the same for all grouping rules. Use the Ordering and Grouping Rules Listing report to view all of the mandatory and optional attributes assigned to your grouping rules.
2. In the diagram below, the grouping rule specifies that to appear on the same invoice items must match on all of the mandatory attributes, for example currency (CURRENCY_CODE) and billto address (ORIG_SYSTEM_BILL_ADDRESS_ID) and must also match on the optional attribute of order type (SALES_ORDER_SOURCE). For example, in the diagram, assume that all mandatory attributes match other than currency and billto address. Items A and B share the same currency and order type, so they appear on the same invoice (Invoice 1). Item C has the same currency as A and B, but it has a different order type, so it appears on its own invoice (Invoice 2). Items D and E share the same currency and Order Type, so they appear on the same invoice (Invoice 3).
3. AutoInvoice uses the following hierarchy to determine which grouping rule to use for a transaction line: 1) The grouping rule specified in the Transaction Sources window for the batch source of the transaction line 2) The grouping rule specified in the Customer Profile Classes window for the billto site use of the transaction line 3) The grouping rule specified in the Customer Profile Classes window for the billto customer of the transaction line 4) If you do not specify a rule in either the Transaction Sources or Customer Profile Classes window, AutoInvoice uses the default grouping rule specified in the System Options window. 4. Receivables provides the DEFAULT grouping rule which contains all of the mandatory attributes. If you upgrade from a previous version of Receivables, the DEFAULT grouping rule initially becomes your default grouping rule. If you use the DEFAULT rule to create transactions, Receivables does not require that you define any additional grouping rules. You can add optional attributes to the DEFAULT grouping rule to create new grouping rules. You cannot delete any mandatory attributes from a grouping rule. Attention: If you are doing a fresh install of Receivables, you must enter a default grouping rule in the System Options window. You can enter the grouping rule that Receivables provides or one that you create. Receivables lets you assign an invoice line ordering rule to each of your grouping rules. AutoInvoice uses the invoice line ordering rule to order your transaction lines when grouping revenue and credit transactions into invoices, debit memos, and credit memos. 5. If you have transactions that fail validation, Receivables looks at the value you entered in the Invalid Line field for your transaction batch source to determine the grouping of your transactions. (This field is located in the Transaction Sources window, AutoInvoice Processing Options tabbed region.) If you entered Reject Invoice, AutoInvoice rejects all of the transactions that make up one invoice if any of the transactions are invalid. For example, if your grouping rule specifies that three transactions should be created as one invoice and one of the transactions has an error, AutoInvoice rejects all three transactions and does not create an invoice. However, if you entered Create Invoice, AutoInvoice rejects the one invalid transaction and creates an invoice from the two remaining valid transactions. 6. Transaction Number Validation Receivables validates that transaction and document numbers are unique within a batch after grouping has completed. In certain cases, AutoInvoice will create multiple invoices in the same group with the same transaction or document number. Once grouping is completed, AutoInvoice checks for duplicate transaction and document numbers and reports any lines that fail validation.
For example, two lines are imported with the same transaction number, but they have different currency codes. These lines will be split into two separate invoices during grouping due to the different currency codes. Once grouping has completed, both of the invoices will fail validation due to identical transaction numbers.
Example
Example
3 different sales orders are shipped with 2 differnt delivery ids. The default grouping rule contains only the required attributes. When we run autoinvice for all these SOs the system 'll create only one Invoice.
Check the reference number in invoice Header.
AutoInvoice Line Ordering Rules

Define invoice line ordering rules for transaction lines that you import into Receivables using AutoInvoice. AutoInvoice uses these rules to order transaction lines when grouping the transactions it creates into invoices, debit memos, and credit memos. You can assign a line ordering rule to each grouping rule.
You also assign transaction attributes to your line ordering rules. AutoInvoice uses these attributes to order invoice lines. You can assign a priority to these attributes for each of your invoice line ordering rules. You can also specify an ascending or descending order for each transaction attribute assigned to a rule. Active invoice line ordering rules appear as list of values choices in the Grouping Rules window.
Suggestion: If you are importing transactions from Oracle Order Management, create an invoice line ordering rule with the attribute SALES_ORDER_LINE to list the items on the invoice in the same order as they appear on the sales order.
Approval Limits
Use the Approval Limits window to define approval limits for adjustments created in Receivables, requests for credit memos initiated from iReceivables, and writeoffs for receipts. Receivables uses approval limits that have a document type of Adjustment when you create an adjustment in the Adjustments, Submit AutoAdjustments, and Approve Adjustments windows.
When you enter an adjustment that is outside your approval limit range, Receivables assigns the adjustment a status of Pending until someone with the appropriate approval limits either approves or rejects it.
The Credit Memo Request Approval Workflow uses approval limits that have a document type of Credit Memo when forwarding credit memo requests from iReceivables. The workflow sends a notification to an approver if the request is within the approval limit range for the currency and reason code specified.
When you write off an unapplied receipt amount, Receivables uses approval limits that have a document type of Receipt Writeoff. You cannot write off a receipt amount that is outside your approval limit range. You can only write off positive amounts.
You define Adjustment approval limits by currency and dollar amount. You define Credit Memo approval limits by reason type, currency, and dollar amount. You define Receipt Writeoff approval limits by currency and dollar amount. The approval limits for writeoffs are separate from, but cannot exceed, the system level writeoff maximum amount that you define in the System Options window. You must specify both lower and upper approval limits for each approver.
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Receipt Sources
Define receipt batch sources to provide default values for the receipt class, payment method, and remittance bank account fields for receipts you add to a receipt batch. You can accept these default values or enter new ones. Receipt batch sources can use either automatic or manual batch numbering.
Receipt source type can either be Manual or Automatic. You can specify a default receipt batch source when defining the profile option AR: Receipt Batch Source. If you specify a default receipt batch source, Receivables displays this source in the Receipt Batches window when you create your receipt batches.
When you select a receipt batch source to enter receipts, Receivables automatically uses the Cash, Receipt Confirmation, Remittance, Factoring, Short Term Debt, Bank Charges, Unapplied Receipts, Unidentified Receipts, OnAccount Receipts, Earned and Unearned Discounts, and Bills Receivable account information you assigned to the payment method for this batch source. The payment method accounts for the receipt entries and applications you make using this receipt batch source. Receivables will issue a warning if you enter a receipt source that includes a payment method that has activities allocated to more than one company. Allocating activities to more than one company will cause some reconciliation reports to distribute data of previously entered transactions across multiple companies. Therefore, information regarding a particular receipt may be distributed across multiple company reports. For example, the Applied and Earned Discount amounts in the Applied Receipt Register would be shown across multiple company reports if you allocated them to different companies. Receivables provides the automatic receipt source Automatic Receipts. You cannot update this predefined receipt source except for the Last Number field. All of the receipt batch sources you define are created with a Receipt Source Type of Manual. Prerequisites
Define receipt classes Define payment methods Define banks
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Receipt Classes & Payment Methods

Define receipt classes to determine the required processing steps for receipts to which you assign payment methods with this class. These steps include creation/confirmation, remittance, and reconciliation. For example, you must create and remit a direct debit, but you must create, confirm, and remit a bills receivable remittance. You can specify any combination of these processing steps with one exception: if you confirm and reconcile, then you must also remit. If you enter No for all three of these steps, Receivables automatically creates receipts assigned to this receipt class with a status of Cleared. Receivables uses the payment method you assign to a receipt class to determine how to account for receipts you create using this receipt class.For each receipt class, you can specify a creation method, remittance method, and whether to require bank clearance for receipts that you assign to this class. If you are defining a receipt class for bills receivable creation payment methods, then Require Confirmation, Remittance Method, and Clearance Method are disabled.
Creation Method If you choose Automatic, you can create receipts with this receipt class using the Automatic Receipt program. If you choose Manual, receipts using this receipt class must either be entered manually in the Receipts or QuickCash window, or imported into Receivables using AutoLockbox.If you choose Bills Receivable or Bills Receivable Remittance, Receivables enables the Bills Receivable or Bill Receivable Remittance tab. Remittance Method If you checked the Require Confirmation box, choose a Remittance Method. The remittance method determines the accounts that Receivables uses for automatic receipts that you create using payment methods to which you assign this receipt class. Choose one of the following methods:
Standard: Use the remittance account for automatic receipts or for standard bills receivable assigned to a payment method with this receipt class. Factoring: Use the factoring account for automatic receipts or for factored bills receivable assigned to a payment method with this receipt class. Standard and Factoring: Choose this method if you want Receivables to select receipts assigned to this receipt class for remittance regardless of the batch remittance method. In this case, you can specify either of these remittance methods when creating your remittance batches.
No Remittance: Choose this method if you do not require receipts assigned to this receipt class to be remitted.
Note: If the Require Confirmation box is not checked and you choose a Remittance Method of No Remittance, automatic receipts that you create using this payment method and receipt class will be created as Confirmed. Clearance Methods To require receipts created using a payment method assigned to this receipt class to be reconciled before posting them to your cash account in the general ledger, choose one of the following Clearance Methods:
Directly: Choose this method if you do not expect the receipts to be remitted to the bank and subsequently cleared. These receipts will be assumed to be cleared at the time of receipt entry and will require no further processing. Choosing this method is the same as setting Require Bank Clearance to No in previous releases of Receivables.
By Automatic Clearing: Choose this method to clear receipts using the Automatic Clearing program. (Receipts using this method can also be cleared in Oracle Cash Management.) By Matching: Choose this method if you want to clear your receipts manually in Oracle Cash Management.
Payment Methods
Payment Methods
Receivables uses payment methods to account for your receipt entries and applications. Payment methods also determine a customers remittance bank information. For bills receivable, you need to define two types of payment methods: creation payment methods, which determine how Receivables automatically creates bills receivable from transactions, and remittance payment methods, which designate the remittance banks and accounting for bills receivable remittances.
You can assign multiple remittance banks to each payment method, but only one bank account can be the primary account for each currency. For each remittance bank branch account assigned to a payment method, you must define all of your receipt accounts. You can then assign your payment methods to your receipt sources to use with your AutoLockbox and manually entered receipts.
The receipt class you assign to each of your payment methods determines the processing steps that Receivables requires for receipts that you create using this payment method. These
steps include whether to require confirmation, remittance, and bank clearance for receipts that you create with a specific receipt class.
Receivables requires that you specify a payment method when you create your automatic receipts through the Receipt Batches window.You also assign payment methods to invoices when you manually enter them in the Transactions window. You can assign all payment methods to transactions in the Transactions window, with the exception of bills receivable remittance payment methods. You enter bills receivable remittance payment methods in the Remittances window. Only automatic payment methods can be associated with invoices. If you remit receipts in several currencies for a single payment method, you must enter at least one remittance bank per currency. At least one of these remittance banks must be primary. Note: You define payment methods in the Receipt Classes window.
Number of Receipts Rules When defining payment methods for a receipt class with an Automatic creation method, you can choose from the following receipts rules: One Per Customer: Create one payment for each customer. One per customer and Due Date: Create one payment for each customer and due date. This option creates several payments for a customer if a customers invoices have several due dates. One per Site: Create one payment for each site. One per Invoice: Create one payment for each invoice. One per Site and Due Date: Create one payment for each customer site and due date.
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RemitTo Addresses
Define remitto addresses to let your customers know where to send payment for their invoices. Receivables uses the addresses that you define in the Remit To Addresses window to provide default remitto information when you enter transactions. If you use AutoInvoice but have not defined a remitto address for a location, AutoInvoice will reject all invoices for which it could not determine a remitto address. However, if you do not wish to set up a remitto address for each location, you can set up one remitto address with a default assignment. Receivables will then use this address for all locations or for any locations for which you do not have specific location assignments. This ensures that AutoInvoice will not reject invoices because it could not determine a remitto address. If you check the Print RemitTo Address box in the System Options window, Receivables prints the remitto address that you define here on your dunning letters and statements. The system profile option AR: Dunning Letter RemitTo Address Label Size lets you specify the length and width of your remit to address on your dunning letters. Defining a Default Remit To Address Define default remitto addresses to ensure that:
Receivables is able to provide a default remit to address when you enter transactions
AutoInvoice will not reject invoices because it is not able to determine a remitto address
You can only have one default remitto address for each country and state combination. For example, you can have one default remitto address for United States/California, one for United States/Nevada, and so on. Enter Default value in the Country field, or select this from the list of values. Home Account Receivables Setting Up
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Banks
Use the Banks window to enter bank information for bank branches with which you do business. Some Oracle Financial Applications, including Receivables and Payables, share bank definitions, although not every application uses all available bank information. Each bank branch can have multiple bank accounts, and each bank account you define can be associated with Payables payment documents and/or Receivables payment methods.
If you use Receivables, use the Banks window to define your internal banks, which you use for receipts, and external banks, which are your customers banks with which you do business. If you use Receivables only, you do not need to define Payables payment documents. If you use Payables, use the Banks window to define your internal bank accounts from which you disburse payments. For each internal bank account, you can define payment documents for checks, electronic payments (EFT and EDI), wire transfers, and other payment methods. You can also enter supplier bank information for your suppliers to which you send electronic payments. If you use Payables only, you do not need to define clearing houses. If you are using Oracle Cash Management, you need to define a Bank Errors Account, a Bank Charges Account, and a Cash Clearing Account for each bank account you plan on reconciling by using Cash Management. If you use Payables, you can override these accounts for each payment document you define. Define clearing houses to record banks that process electronic versions of your receipt information which you send to them. These clearing institutions then create copies of your customer receipt information which they forward to each of your remittance banks.
Banks Window Reference Defining Bank Accounts
Home Account Receivables Setting Up Banks
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Banks Window Reference

Posted Tue, 02/23/2010 - 13:22 by Anonymous
Bank regionName The name of the bank.Alternate Name You can enter an alternate name for your bank. This is particularly useful if you do business in Japan so you can enter both Kanji and Kana values for your bank name. The system does not use the value. It is for your reference only.Number Identification number of the bank. Payables uses this information to identify the bank in payment formats that use electronic payment methods. The combination of Bank Number, Branch Number, and Country must be unique.Bank Branch Region Name The name of the bank branch. Alternate Name You can enter an alternate name for your bank branch. This is particularly useful if you do business in Japan so you can enter both Kanji and Kana values for your bank branch name. The system does not use the value. It is for your reference only.Number The bank branch number.Payables used this information to identify the bank branch in payment formats that use electronic payment methods, in creating positive pay files, and when printing the MICR line on checks.Note: For banks based in the United States, enter the American Banking Association ninedigit transit routingnumber in this field. Also, if you use the National Automated Clearing House Association (NACHA) electronic paymentformat, include the bank branch number on both internal and supplier banks.The combination of Branch Number, Bank Account Number, and Country must be unique within a bank.Type The banking organization to which this branch belongs. You must enter a value in this field if you will use this bank for payments with Oracle eCommerce Gateway.Institution Enter either Bank or Clearing House to indicate what type of bank branch you are defining.
Bank. Bank in which you have a disbursement and/or receipt account. Or bank in which your customer has a disbursement account, or your supplier has a receipt account.
Clearing House. Bank that processes a magnetic tape of your receipt information which you send to it. The clearing institution then creates tapes of your customer receipt information which it forwards to each of your remittance banks
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Defining Bank Accounts

Defining Internal Bank Accounts You define internal bank accounts to define bank accounts for which you are the account holder. Receivables uses internal bank accounts to receive payments from customers. Payables uses internal bank accounts to disburse funds to suppliers. Prerequisite
You have installed Receivables. Define custom payment formats for Payables payment documents if you are defining a disbursement bank account. (Optional).
Defining Customer Bank Accounts If you use Receivables, you can enter bank account information for your customers. Receivables uses this information when you receive electronic payments from your customers. To define a customer bank account: 1. In the Banks window query an existing Bank. 2. Choose the Bank Accounts button. Enter the Bank Account Name and Bank Account Number. Optionally enter an Account Type and Description. If you want to use Bank Account validation, enter Check Digits. 3. Select Customer Account Use. 4. Optionally enter contact information in the Account Contact region. 5. Save your work. Defining Supplier Bank Accounts If you use Payables, you can enter bank information for bank accounts for which your supplier is the account holder. You then assign these accounts to the supplier and its sites. Payables uses this bank information when you create electronic payments for your suppliers. You can either define the supplier first and then when you define the bank account you can associate it
with the supplier in the Supplier Assignments region (as described below). Or you can define the bank account first and then assign it to the supplier when you enter the supplier in the Suppliers window. Prerequisite Define the suppliers and supplier sites that use the bank account to receive electronic payments. Defining Multiple Currency Bank Accounts A multiple currency bank account is an account that accepts payments in more than one currency. If you define a multiple currency bank account for payments, the currency of the bank account must be the same as your functional currency. You can enable multi currency receipts in receivables tab and multi currency payments in payable tab.
Bank Transaction Codes Bank Accounts Window Reference Payment Documents
Bank Transaction Codes

If you want to load electronic bank statements or use Cash Management's AutoReconciliation feature, you must define, for each bank account, the transaction codes that your bank uses to identify different types of transactions on its statements. You should define a bank transaction code for each code that you expect to receive from your bank.
You can enter effective date range fields, Start Date and End Date, so that you can make a bank transaction code inactive. You can also delete codes that have not been used, in case you make a mistake in creating one.
To define a bank transaction code:
1. Navigate to the Bank Transaction Codes window.
2. Select the bank, whose codes you are defining, from the Find Bank window. Alternatively, you can query the bank Account Number. The system displays the Bank Transaction Codes window, which includes Bank Account and Bank information, as well as a region for entering transaction codes.
3. For each transaction code you are defining, select a transaction Type from the poplist. The transaction type determines how Cash Management will match and account for transactions with that code. Bank statement lines are coded to identify the type of transaction the line represents. Since each bank might use a different set of transaction codes, you need to map each code a particular bank uses to one of the following Cash Management transaction types. You can select from the following list of values: Payment: Payments such as generated or recorded checks, payment batches, wire transfers, electronic funds transfers, or payroll checks. Receipt: Receipts such as received checks, remittance batches, direct debits, and bills of exchange. Miscellaneous payment: Payments not associated with supplier invoices, such as petty cash transactions directly posted to cost accounts, or bank charges. Miscellaneous receipt: Receipts not associated with customer invoices, such as petty cash transactions directly posted to revenue accounts, such as interest received. Stopped: Stopped payments previously entered, generated, or cleared, such as callback of check. A stopped transaction type matches only to Voided or Stopped payments in Payables or Oracle Payroll. Rejected: Receipts rejected for reasons other than non-sufficient funds, such as an invalid bank account. A rejected transaction type matches only to reversed receipts in Receivables. NSF (Non-Sufficient Funds): Receipts rejected by the bank because the accounts on which they were drawn had non-sufficient funds. You can reverse these receipts by creating a standard reversal. Cash Management reopens the invoices you closed with the original receipt. When you match bank statement lines with transactions, an NSF transaction type only matches to reversed receipts in Receivables.
4. Enter the Code used by your bank.
5. Enter an optional description of the transaction.
6. Enter Start and End Dates to determine when the bank transaction code is considered active.
7. Enter the number of Float Days that you want Cash Management to add to or subtract from the statement date to create an anticipated value date for automatic lockbox receipts.
8. Enter a Transaction Source for payment and receipt transactions. Choose Journal from the list of values to reconcile statement lines with the assigned transaction code to General Ledger journals. Choose Open Interface to reconcile statement lines to settlements in Oracle Treasury or external transactions in the Reconciliation Open Interface. Choose Payables Payments or Receivables Receipts to reconcile statement lines to transactions in Oracle Payables or Oracle Receivables. Choose Payroll Payments to reconcile statement lines to transactions in Oracle Payroll.
9. Optionally select a value for the Payroll Payment Format field to reconcile statement lines with the assigned transaction code to Payroll EFT payments. The Payroll Matching Order field is automatically populated based on the value selected in the Payroll Payment Format field.. It is populated after a Payroll Payment Format has been selected. This field indicates the order in which you need to set up the format for the BANK_TRX_NUMBER in the bank statement mapping template. 10. If the transaction Type is Miscellaneous Receipt or Miscellaneous Payment, enter the Matching Against field to determine the order of matching and the type of transactions to match. Since the same transaction code may be used for matching against both miscellaneous transactions and/or correcting statement errors, you need to indicate, for miscellaneous payments and miscellaneous receipts, the type of transactions to match. If you use a transaction code for both miscellaneous transactions and correcting statement errors, you can also specify the sequence of matching. You can choose from the following values to indicate how to use this bank transaction code: Misc: Only match against miscellaneous transactions. Stmt: Identify the statement line as a correcting entry. The statement line will match against existing statement lines. The netted amount of these lines is used to match to subledger transactions. Misc, Stmt: First try to match against miscellaneous transactions, if there is no match, then try to match against statement lines (corrections). Stmt, Misc: First try to match against statement lines (corrections), if there is no match, then try to match against miscellaneous transactions.
11. Choose the Correction Method your bank uses when correcting bank errors: Reversal, Adjustment, or Both. This field is only applicable for those Miscellaneous Receipt or Miscellaneous Payment transaction codes that may be used to match to correction statement lines. 12. Choose whether to Create transactions for any Miscellaneous Payments and Miscellaneous Receipts reported on the bank statement when no transaction number is provided. 13. If you chose the Create option in the previous field, specify the Receivables Activity type and Payment Method for any miscellaneous transactions (receipts or payments) you create from within Cash Management.
Bank Accounts Window Reference

To help you detect data entry errors, when you enter bank information, the system validates bank numbers and bank account numbers for certain countries.
Operating Unit. Payables displays your operating unit.
Agency Location Code. If your enterprise is a United States federal agency then you might need to enter an Agency Location Code. This code is assigned by the United States Department of the Treasury to identify the source of financial transactions. Name. The name you use to refer to the bank account. You may want to use a name that indicates the usage of the bank account.
Alternate Name. The alternate name for your bank account. You can enter an alternate name for your bank account. This is particularly useful if you do business in Japan so you can enter both Kanji and Kana values for your bank account name. The system does not use the value you enter here unless you enable the Sort by Alternate Fields Payables option. If you enable that option then Payables uses the alternate name when it sorts reports by bank account name. Account Use. Indicate the account holder of this account.
Internal. Your company or organization is the account holder of this account. Customer. (Receivables) Your customer is the account holder of this account. You record Customer Accounts to facilitate unds transfer between the Customer Bank Account and your internal
Bank account Supplier. (Payables) Your supplier is the account holder of this account. You record Supplier Accounts so you can pay your suppliers electronically.
Account Type. Type of your bank account. For example, Electronic. Number. The bank account identification number. The combination of Bank Account Number, Bank Branch Number, Account Use, and Currency must be unique for each bank. Currency. Currency for a bank account. The default value is your functional currency. If you do not enable the Use Multiple Currencies Payables option, Payables does not allow you to change this value. If you select your functional currency as your bank currency, you can enable the Use Multiple Currencies Payables option and use this bank account to pay foreign currency invoices. If you select a different currency than your functional currency in this field, when you define Payables Payment Documents, you will only be able to select payment formats that you define in that currency. Also, you will only be able to pay invoices that you enter in this foreign currency. Inactive On. On and after this date, during transaction entry, the banks account will no longer appear on any lists of values in Payables, and you will not be able to enter the bank account.
Check Digits. The value used to validate the authenticity of your bank account number according to country specific bank account validation requirements. This value is provided by your financial institution. Allow Assignment to Multiple Suppliers Enable this option if your bank account belongs to a company that receives payments for multiple suppliers (a factor company). With this option enabled, Payables allows you to enter any combination of suppliers and sites in the Supplier Assignments region. It will make the account always available in the list of values for the fields (Bank) Name and (Bank) Number in the Bank Accounts region of the Suppliers and Suppliers Sites windows. If you do not enable this option in the Supplier Assignments region, then you can enter any combination of supplier and sites within a supplier, but never a different supplier or a site within a different supplier. Also, the account will not appear on the list of values for (Bank) Name and (Bank) Number in the Bank Accounts region of the Suppliers and Suppliers Sites windows once it has been assigned to any other supplier.
Account Contact & Holder GL Accounts Region of the Bank Accounts Window Payables Options Region Receivable Options
Account Contact & Holder

Account Holder Region of the Bank Accounts Window Account Holder Name of the person or organization within your organization who is responsible for this account (optional).
Alternate Account Holder The alternate name for your bank account holder. If you are using this internal bank account to process NACHAformatted electronic payments, enter the name of the tax reporting entity that will be referenced by the payment files, exactly as it appears in the Reporting Entity window.
If you do not use this bank account for NACHAformatted payments, then this value is not used by the system and is for your reference only.
EFT Requester ID Numeric designation of the organization or person that is responsible for generating this accounts electronic payments (optional). This number is assigned by the bank.
Account Contact Region of the Bank Accounts Window Prefix. The prefix (Mr., Ms., etc.) of the contact.
`Home Account Receivables Setting Up Banks Defining Bank Accounts Bank Accounts
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GL Accounts Region of the Bank Accounts Window

You cannot enter GL Account information for Supplier bank accounts.
Cash Enter the cash account you are associating with a bank account. This account must be an asset account. When you create a payment, Payables creates accounting entries to credit this cash account. For future dated payments, on the payments maturity date, Payables credits the cash account and debits either the future dated payment account or the clearing account (depending on how you account for payments). If you set up Payables to account for payments at clearing time, then Payables creates accounting entries for your unreconciled invoice payments to credit your cash clearing account, instead of your cash account, using the cash clearing account defined in the next field. After you reconcile your payments using Oracle Cash Management, when you create accounting entries for the reconciled invoice payments, you debit your cash clearing account and credit the cash account you enter here. If you enable the Automatic Offsets Payables option and enable the Pooled Account option in the Payables Options region of the Bank Accounts window, then when you create a payment, Payables creates a corresponding cash accounting entry for each liability distribution that you pay using this bank account. Payables uses the cash account you define here together with the Automatic Offset Method you choose in the Payables Options window to create the cash accounting entry.
Cash Clearing If you set up Payables to account for payments at clearing time, enter the cash clearing account you are associating with a bank account. When you create accounting entries for your unreconciled invoice payments, you credit your cash clearing account using this account. After you reconcile your invoice payments using Oracle Cash Management, when you create accounting entries for the cleared payments, you debit this cash clearing account and credit this bank accounts cash account. The account you enter here defaults to the Cash Clearing Account field in the GL Accounts region of the Payment Documents window. For future dated payments, when the payment is recorded as mature, Payables debits the future dated payment account and credits the cash clearing account. After you reconcile your invoice payments using Oracle Cash Management, when you create accounting entries you debit the cash clearing account and credit the cash account. Bank Charges If you are using Oracle Cash Management to reconcile your payments, enter the bank charges account you are associating with a bank account. After you reconcile your invoice payments, using Oracle Cash Management, Payables creates accounting entries to record your bank charges using this account. The account you enter here defaults to the Bank Charges account field in the GL Accounts region of the Payment Documents window. Bank Errors. If you have enabled the Account for Payment When Payment Clears Payables option and if you are using Oracle Cash Management to reconcile your payments, then enter the bank errors account you are associating with a bank account. When you reconcile your invoice payment using Oracle Cash Management, Payables creates accounting entries to record any bank errors using this account. The account you enter here defaults to the Bank Errors account field in the GL Accounts region of the Payment Documents window. Confirmed Receipts If you use Automatic Receipts in Receivables and are required to send receipt information to your customer before applying the receipt, the receivable is maintained in the Accounts Receivable account until it is confirmed by the customer. Upon confirmation, it is reversed from the Accounts Receivable account and placed into the Confirmed Receipts account. If you are not required to send receipt information to your customer, the receivable is automatically reversed from Accounts Receivable and placed into Confirmed Receipts.
Future Dated Payment If you will use this bank account to disburse future dated payments, enter the default value for the future dated payment account. This value will default to payment documents you enter for this bank account. When Payables accounts for future dated payments, it uses the future dated payment account from either the payment document or supplier site, depending on how the Use Future Dated Payment Account Payables option is set.
Payables Options Region

You cannot enter Payables Options information for Supplier bank accounts.
Maximum Outlay. The largest currency outlay that you allow for a payment batch for this bank account. If the total outlay of a payment batch exceeds the maximum outlay for the payment batch, Payables displays a warning, but allows you to continue processing the payment batch. The Maximum Outlay for a bank account defaults from the Payables Options window. When you initiate a payment batch using the bank account, Payables uses the bank accounts Maximum Outlay as a default. You can override this default. Maximum Payment. The largest payment amount that you allow in a payment batch. When you initiate a payment batch using the bank account, Payables uses the bank accounts Maximum Payment as a default. You can override this default. Minimum Payment. The lowest payment amount that you allow in a payment batch. When you initiate a payment batch using the bank account, Payables uses the bank accounts Minimum Payment as a default. You can override this default.
Realized Gain. If the bank account is a foreign currency or multiple currency account, enter the account you want Payables to use when creating accounting entries for realized exchange rate gains on foreign currency payments. If you use Payables, the default for this field is the Realized Gain Account you define in the Payables Options window. If you are not using multiple currencies, you can leave this field blank. Realized Loss. If the bank account is a foreign currency or multiple currency account, enter the account you want Payables to use when creating accounting entries for realized exchange rate losses on foreign currency payments. If you use Payables, the default account is the Realized Loss Account from the Payables Options window. If you are not using multiple currencies, you can leave this field blank.
Multiple Currency Payments Enable this option if you want to use this bank account to pay invoices entered in multiple currencies. You can select this option only if the Use Multiple Currencies Payables option is enabled and if the bank account is in your functional currency. Allow Zero Payments If you will allow zeroamount payments from this bank account, enable this option. Pooled Account If you use Automatic Offsets and you want to associate multiple companies with this bank account, then enable this option. When you enable the Automatic Offsets Payables option, Payables creates one offsetting liability distribution for each invoice distribution. If you then pay the invoice from a pooled bank account, then which Payables accounts for the invoice payment, Payables creates one corresponding cash accounting entry for each liability distribution. In addition, Payables builds the cash account based on the Cash Account defined for the bank account, and on the account segments of the liability lines. If you do not use a pooled account, then when Payables accounts for the payment, it creates a single accounting entry for the Cash Account, and uses the Cash Account that is defined for the bank account without modifying any account segments.
Receivable Options
Payment Documents
Use the Payment Documents window to define payment documents for an internal bank account . Examples of payment documents are checks or electronic payments. You must create at least one payment document before you can use a bank account to create invoice payments. You can create an unlimited number of payment documents for an internal bank account. When you define payment documents, you can only select payment formats that use the same currency as the bank account currency. If the bank account is a multiple currency bank account, you can choose foreign currency payment formats or multiple currency payment formats.
To define a payment document:
1. In the Bank Accounts window, query a disbursement bank account. Choose the Payables Documents button to navigate to the Payment Documents window. 2. Enter a name for the payment document that is unique for the bank account. Select a Disbursement Type and Payment Format. Enter in the Last Document Number field the last payment document number you used on a payment document. In the Last Available Document Number field, enter the last payment document number available for a payment document. 2.2 In the Additional Information region, enter the number of Setup Checks you want Payables to print at the beginning of each automatic payment batch. If you are using the sequential numbering feature, optionally assign a Document Category.
If you are using the Automatic Bank Transmission feature to automatically transmit this payment document, then in the Additional Information tabbed region, select a transmission code. 2.3 If you have enabled Oracle Cash Management integration for reconciliation, optionally override the GL Accounts in the GL Accounts region. 2.4 If you want to use the payment document for future dated payments, then in the Future Dated payments tabbed region, set the Future Date Use option to either Allowed or Mandatory. If you use the future dated payment account from the payment document rather than the supplier site, then enter the account. Payment Document Restrictions: DOCUMENT NUMBERS: You cannot define a document number more than once for the same bank account. For example, if a payment document uses document numbers 0 1000, then other payment document numbers you define for the same bank account cannot use any numbers in that range
AutoCash Rule Sets

Posted Sun, 08/09/2009 - 15:56 by Anonymous
The Post QuickCash program uses AutoCash rules to determine how to automatically apply your receipts. Receivables uses your customers open balance along with the AutoCash rules to determine how to apply receipts and whether you allow partial payments to be applied to your customers items. If Receivables is not able to apply or fully apply a receipt, you can specify whether the remaining amount is left as Unapplied or OnAccount. Receivables provides five AutoCash rules you can use to create your AutoCash rule sets. When you define your AutoCash rule sets, you specify which rules to use and the sequence of these rules. To determine which AutoCash Rule Set to use when applying receipts, Receivables uses the following hierarchy, stopping when one is found: 1. Customer site 2. Customer profile class 3. System Options window Receivables provides a default AutoCash Rule Set when you assign a customer to a credit profile, but you can modify individual AutoCash Rule Set assignments at both the customer and customer site levels. If you do not assign an AutoCash Rule Set to a customers credit profile, and you enter a receipt for this customer, Receivables uses the AutoCash Rule Set that you entered in the System Options window along with the number of Discount Grace Days you specified in this customers credit profile to apply the receipt. If you assign an AutoCash Rule Set to a customer, but none of the AutoCash Rules
apply, Receivables places the remaining amount Unapplied or OnAccount, depending on how you set the Remaining Remittance Amount option for the rule set. If you have set up your system to use bank charges and a tolerance limit, Post QuickCash will also consider these amounts if the current AutoCash rule fails (this is true for all rules except Apply to the Oldest Invoice First). If it finds a match, Post QuickCash applies the receipt; otherwise, it looks at the next rule in the sequence. For more information, You can disable an existing AutoCash Rule Set by changing its status to Inactive and then saving your work.
1. Enter the type of Discount you want to automatically give to your customer for this AutoCash Rule Set. Choose one of the following Discount options: Earned Only: Your customer can take earned discounts according to the receipt terms of sale. You negotiate earned discount percentages when you define specific receipt terms. You can enter this option if Allow Unearned Discounts is set to Yes in the System Options window. In this case, Receivables only allows earned discounts for this AutoCash Rule Set. Earned and Unearned: Your customer can take both earned and unearned discounts. An unearned discount is one taken after the discount period passes. You cannot choose this option if the system option Unearned Discounts is set to No. None: Your customer cannot take discounts (this is the default). 2. If this rule set will include the Apply to the Oldest Invoice First rule, choose how you want to apply any Remaining Remittance Amount. Receivables uses this value to determine how to enter the remaining amount of the receipt if none of the AutoCash Rules within this rule set apply. Choose
Unapplied to mark remaining receipt amounts as Unapplied. Choose OnAccount to place remaining receipt amounts OnAccount. 3. To automatically apply partial receipts when using the Apply to the Oldest Invoice First rule, check the Apply Partial Receipts check box. A partial receipt is one in which the receipt minus the applicable discount does not close the debit item to which this receipt is applied. The applicable discount that Receivables uses for this rule depends upon the value you entered in the Discounts field for this AutoCash Rule Set. If you exclude finance charges (by setting Finance Charges to No) and the amount of your receipt is equal to the amount of the debit item to which you are applying this receipt minus the finance charges, Receivables defines this receipt as a partial receipt. In this case, Receivables does not close the debit item because the finance charges for this debit item are still outstanding. If Apply Partial Receipts is set to No, this AutoCash Rule Set will not apply partial receipts and will either mark the remaining receipt amount Unapplied or place it onaccount, depending on the value you entered in the Remaining Remittance Amount field. Auto Cash Rules Apply to the Oldest Invoice First: This rule matches receipts to debit and credit items starting with the oldest item first. This rule uses the transaction due date when determining which transaction to apply to first. This rule uses the values you specified for this AutoCash Rule Set's open balance calculation to determine your customer's oldest outstanding debit item. Post QuickCash uses the next rule in the set if any of the following are true:
all of your debit and credit items are closed the entire receipt amount is applied it encounters a partial receipt application and Allow Partial Receipts is set to No for this AutoCash Rule Set the next oldest debit item includes late charges and Finance Charges is set to No for this AutoCash Rule Set
This rule marks any remaining receipt amount 'Unapplied' or places it on-account, depending on the value you entered in the Remaining Remittance Amount field for this AutoCash Rule set (see step 8). Clear the Account: Post QuickCash uses this rule only if your customer's account balance exactly matches the amount of the receipt. If the receipt amount does not exactly match this customer's account balance, Post QuickCash uses the next rule in the set. This rule calculates your customer's account balance by using the values you specified for this AutoCash Rule Set's open balance calculation and the number of Discount Grace Days in this customer's profile class. This rule also
includes all of this customer's debit and credit items when calculating their account balance. This rule ignores the value of the Apply Partial Receipts option. This AutoCash Rule uses the following equation to calculate the open balance for each debit item: Open Balance = Original Balance + Late Charges - Discount Receivables then adds the balance for each debit item to determine the customer's total account balance. The 'Clear the Account' rule uses this equation for each invoice, chargeback, debit memo, credit memo, and application of an Unapplied or On-Account receipt to a debit item. Note: The discount amount for each item depends upon the payment terms of the item and the value of the Discounts field for this AutoCash Rule Set. The number of Discount Grace Days in this customer's credit profile, along with the payment terms assigned to their outstanding invoices, determine the actual due dates of each debit item. Clear Past Due Invoices: This rule is similar to the 'Clear the Account' rule because it applies the receipt to your customer's debit and credit items only if the total of these items exactly matches the amount of this receipt. However, this rule only applies the receipt to items that are currently past due. A debit item is considered past due if its due date is earlier than the receipt deposit date. This rule considers credit items (i.e. any pre-existing, unapplied receipt or credit memo) to be past due if the deposit date of the receipt is either the same as or later than the deposit date of this pre-existing receipt or credit memo. In this case, this rule uses a pre-existing receipt or credit memo before the current receipt for your AutoCash receipt applications. If this AutoCash Rule Set's open balance calculation does not include late charges or disputed items, and this customer has past due items that are in dispute or items with balances that include late charges, this rule will not close these items. This rule ignores the value of the Apply Partial Receipts option. Clear Past Due Invoices Grouped by Payment Term: This rule is similar to the 'Clear Past Due Invoices' rule, but it first groups past due invoices by their payment term, and then uses the oldest transaction due date within the group as the group due date. When using this rule, Receivables can only apply the receipt if the receipt amount exactly matches the sum of your customer's credit memos and past due invoices. A debit item is considered past due if the invoice due date is earlier than the deposit date of the receipt you are applying. For credit memos, Receivables uses the credit memo date to determine whether to include these amounts in the customer's account balance. For example, if you are applying a receipt with a receipt date of 10-JAN-93, credit memos that have a transaction date (credit memo date) on or earlier than 10-JAN-93 will be included. Credit memos do not have payment terms, so they are included in each group.
Match Payment with Invoice: This rule applies the receipt to a single invoice, debit memo, or
chargeback that has a remaining amount due exactly equal to the receipt amount. This rule uses the values that you enter for this AutoCash Rule Set's open balance calculation to determine the remaining amount due of this customer's debit items. For example, if Finance Charges is No for this rule set and the amount of this receipt is equal to the amount due for a debit item minus its late charges, this rule applies the receipt to that debit item. If this rule cannot find a debit item that matches the receipt amount, Post QuickCash looks at the next rule in the set. This rule ignores the value of the Apply Partial Receipts option. Notes: AutoCash rule sets decide which rules are applied to select the transactions to be applied for the receipt. Once that is done Application rule set decides how the open balances of the customer are applied i.e the sequence in which the line amount/tax/fright are deducted from open balance. Example : You create a receipt of $1000 for a customer which has 4 different invoices open. AutoCash rule ll decide the sequences of the invoice in which the payment ll be applied i.e INV1, INV3, INV4 and INV2. Now when INV1 is selected, the application rule setll decide which amount (Line, Tax or Freight) ll be applied first and next.
Application Rule Sets

Use the Application Rules Sets window to review existing and define new application rule sets. Application rule sets specify the default payment steps for your receipt applications and how discounts affect the open balance for each type of associated charges. By defining your own application rule set, you can determine how Receivables reduces the balance due for a transactions line, tax, freight, and finance charges. Receivables provides the following application rules:
Line First Tax After: Apply to the open line item amount first. Apply any remaining amount in the following order: tax, freight, and then finance charges. Line First Tax Prorate: Apply a proportionate amount to the open line item amount and the open tax amount for each line. Apply any remaining amount to freight and then to finance charges.
Prorate All: Apply a proportionate amount to the line, tax, freight, and finance charges.
To define an application rule set: Navigate to the Application Rule Sets window and Enter a Name and Description for this rule set.
1. Enter the Sequence number for this application rule. Receivables applies payments in this sequence, beginning with the lowest sequence number. Note: You cannot enter a sequence number for the Overapplication rule. By default, this rule is last in the sequence for each application rule set.
2. Enter an application Rule. Each rule will correspond to a line type (for example, lines, freight, or charges), so you should give your rule a descriptive name. Each rule set must have at least one application rule. Attention: Receivables automatically assigns the Overapplication rule to each application rule set. You cannot delete this rule. The Overapplication rule applies any remaining amount after the balance due for each item has been reduced to zero. If the transaction type of the debit item allows overapplication, this rule prorates the remaining amount between each line and its associated tax amount, making these amounts negative. If the transaction type does not allow overapplication, you
can either place the remaining amount onaccount or leave it Unapplied.
3. Enter Rule Details for this application rule. This section indicates the type of charges and the tax handling for this rule. Choose a Type of Line, Freight, or Charges. You need to enter at least one type for your rule set.
4. If you chose a Type of Line, choose a Tax Treatment. Choose one of the following:
1. Prorate: Choose this option to proportionately reduce the net amount of the line and
associated tax amounts.
2. Before: Choose this option to first reduce the open tax amount, then apply any remaining
amount to the line.
3. After: Choose this option to reduce the open line amount, then apply any remaining amount to
the associated tax. Note: The default Tax Treatment for your Freight and Charges types is None. This option ignores tax, since you cannot tax freight and charges in Receivables. You cannot choose None for your Line type. 5. To automatically adjust this line type to account for any rounding corrections within this rule set, check the Rounding Correction box. When an amount is prorated among several line types, Receivables must use one of the line types to account for the rounding adjustment. Each application rule set must have one and only one rounding correction line type. Suggestion: Assign the Rounding Correction to the line type that is usually the largest portion of your invoices. By doing this, the rounding correction will have the least effect on the overall remaining and applied amounts for this line type. 6. Repeat the previous steps for each rule you want to add to this rule set. Save your work. 7. When you are satisfied with this rule set definition, check the Freeze box. Receivables verifies that your application rule set is defined properly and that it does not violate any basic application guidelines. If this rule set fails validation, Receivables displays an error message. In this case, modify your rule set definition, then check the Freeze box again to revalidate it. Attention: A rule set must be frozen before you can assign it to a transaction type or use it as your default rule it in the System Options window. Additionally, after you freeze an application rule set, you cannot update or delete it.
Receivables Activities
Define receivables activities to default accounting information for your miscellaneous cash, discounts, finance charges, adjustments, bills receivable, and receipt writeoffs. Activities that you define appear as list of values choices in various Receivables windows. You can define as many activities as you need. The Tax Code Source you specify determines whether Receivables calculates and accounts for tax on adjustments, discounts, finance charges, and miscellaneous receipts assigned to this activity. If you specify a Tax Code Source of Invoice, then Receivables uses the tax accounting information defined for the invoice tax code(s) to automatically account for the tax. If the Receivables Activity type is Miscellaneous Cash, then you can allocate tax to the Asset or Liability tax accounts that you define for this Receivables Activity. Receivables uses finance charge activity accounting information when you assess finance charges in your statements and dunning letters. Query the Chargeback Adjustment activity that Receivables provides and specify GL accounts for this activity before creating chargebacks in Receivables. You can make an activity inactive by unchecking the Active check box and then saving your work. Attention: Once you define an activity, you cannot change its type. However, you can update an existing activitys GL account, even if you have already assigned this activity to a transaction.
Activity Types An activity's type determines whether it uses a distribution set or GL account and in which window your activity appears in the list of values. You can choose from the following types: Adjustment: You use activities of this type in the Adjustments window. You must create at least one activity of this type. Note: In the Adjustments window, you cannot select the Adjustment Reversal, Chargeback Adjustment, Chargeback Reversal, and Commitment Adjustment activities to manually adjust transactions. These four activities are reserved for internal use only, and should not be end dated. When you reverse a receipt, if an adjustment or chargeback exists, Receivables automatically generates off-setting adjustments using the Adjustment Reversal and Chargeback Reversal activities. When your customers invoice against their commitments, Receivables automatically adjusts the commitment balance and generates an off-setting adjustment against the invoice using the Commitment Adjustment activity.
Bank Error: You use activities of this type in the Receipts window when entering miscellaneous receipts. You can use this type of activity to help reconcile bank statements using Oracle Cash Management. Claim Investigation: You use activities of this type in the Receipts Applications and QuickCash windows when placing receipt overpayments, short payments, and invalid Lockbox transactions into claim investigation. The receivable activity that you use determines the accounting for these claim investigation applications. For use only with Oracle Trade Management. Credit Card Chargeback: Use activities of this type in the Receipts Applications window when recording credit card chargebacks. This activity includes information about the General Ledger clearing account used to clear the chargebacks. Receivables credits the clearing account when you apply a credit card chargeback, and then debits the account after generating the negative miscellaneous receipt. If you later determine the chargeback is invalid, then Receivables debits the clearing account when you unapply the credit card chargeback, and then credits the account after reversing the negative miscellaneous receipt. Only one activity can be active at a time. Credit Card Refund: You use activities of this type in the Receipts Applications window when processing refunds to customer credit card accounts. This activity includes information about the General Ledger clearing account used to clear credit card refunds. You must create at least one activity of this type to process credit card refunds. Earned Discount: You use activities of this type in the Adjustments and the Remittance Banks windows. Use this type of activity to adjust a transaction if payment is received within the discount period (determined by the transaction's payment terms). Endorsements: The endorsement account is an offsetting account that records the endorsement of a bill receivable. This is typically defined with an Oracle Payables clearing account. Late Charges: You use activities of this type in the System Options window when you define a late charge policy. You must define a late charge activity if you record late charges as adjustments against overdue transactions. If you assess penalties in addition to late charges, then define a separate activity for penalties. Miscellaneous Cash: You use activities of this type in the Receipts window when entering miscellaneous receipts. You must create at least one activity of this type. Payment Netting: You use activities of this type in the Applications window and in the QuickCash Multiple Application window when applying a receipt against other open receipts. The GL Account Source field defaults to Activity GL Account and you must enter a GL account in the Activity GL Account field. The GL account that you specify will be the clearing account used when offsetting one receipt against another receipt. The Tax Rate Code Source field defaults to None.
You can define multiple receivables activities of this type, but only one Payment Netting activity can be active at any given time. Prepayments: Receivables uses activities of this type in the Applications window when creating prepayment receipts. When the Prepayment activity type is selected, the GL Account Source field defaults to Activity GL Account and you must enter a GL account in the Activity GL Account field. The GL account that you specify will be the default account for prepayment receipts that use this receivables activity. The Tax Rate Code Source field defaults to None. You can define multiple receivables activities of this type, but only one prepayment activity can be active at any given time. Receipt Write-off: You use activities of this type in the Receipts Applications and the Create Receipt Write-off windows. The receivable activity that you use determines which GL account is credited when you write off an unapplied amount or an underpayment on a receipt. Refund: Use activities of this type in the Applications window to process automated non-credit card refunds. This activity includes information about the General Ledger clearing account used to clear refunds. Create at least one activity of this type. Only one activity can be active at a time. Short Term Debt: You use activities of this type in the GL Account tabbed region of the Remittance Banks window. The short-term debt account records advances made to creditors by the bank when bills receivable are factored with recourse. Receivables assigns short-term debt receivables activities to bills receivable remittance receipt methods. Unearned Discount: You use activities of this type in the Adjustments and the Remittance Banks windows. Use this type of activity to adjust a transaction if payment is received after the discount period (determined by the transaction's payment terms). GL Account Source Indicate how Receivables should derive the accounts for the expense or revenue generated by this activity by specifying a GL Account Source. Choose one of the following:
Activity GL Account: Allocate the expense or revenue to the general ledger account that you specify for this Receivables Activity . If the activity type is Bank Error, Claim Investigation, Endorsement, Late Charges, Prepayment, Receipt Write-off, or Short Term Debt, you can only choose this GL account source. Distribution Set: Allocate the expense or revenue to the distribution set that you specify for this Receivables Activity. A distribution set is a predefined group of general ledger accounting codes that determine the accounts for miscellaneous receipts and payments. You can choose this option only if the activity type is Miscellaneous Cash.
Revenue on Invoice: Allocate the expense or revenue net of any tax to the revenue account(s) specified on the invoice. If Tax Rate Code Source is set to None, allocate the gross amount to these accounts. You can only choose this option if the activity type is Adjustment, Earned Discount, or Unearned Discount. If the revenue on the specified invoice is unearned, then Receivables calls the Revenue Adjustment API, which uses AutoAccounting to derive the anticipated revenue accounting distribution accounts and amounts. The accounting engine then uses this information to allocate the adjustment or discount amount to these derived revenue account(s). Tax Rate Code on Invoice: Allocate the net portion using the Expense/Revenue accounts specified by the tax rate code on the invoice. If Tax Rate Code Source is set to None, allocate the gross amount to these accounts. You can only choose this option if the activity type is Adjustment, Earned Discount, or Unearned Discount. In the event of an adjustment to an invoice with zero amount revenue distributions, the adjustment activity's GL Account Source must not be set to Revenue on Invoice or Tax Rate Code on Invoice. Tax Rate Code Source Specify a Tax Rate Code Source to indicate where Receivables derives the tax rate code for this activity. Choose one of the following: None: Allocates the entire tax amount according to the GL Account Source you specified. Choose this option if you do not want to separately account for tax. Activity: Allocate the tax amount to the Asset or Liability tax accounts specified by the Receivables Activity. Invoice: Distribute the tax amount to the tax accounts specified by the tax rate code on the invoice. You cannot choose this option if the activity Type is Miscellaneous Cash or Late Charges. In the event of a tax adjustment to an invoice with zero amount tax distributions, the adjustment activity's Tax Rate Code Source must not be set to Invoice. If the Tax Rate Code Source is Activity or Invoice, Receivables displays the Recoverable and NonRecoverable options. Indicate whether tax for this activity can be taken as a deduction. If the tax is deductible, choose the Tax Recoverable option; otherwise, choose Non-Recoverable. If your Tax Rate Code Source is Invoice, Recoverable is the default but you can change it. If your Tax Rate Code Source is Activity or None, Non-Recoverable is the default and you cannot change it. Note: If your activity type is Miscellaneous Cash or Bank Error, the Recoverable and Non-Recoverable options do not appear. Activity GL Account Enter an Activity GL Account, or select from the list of values.
If the activity type is Credit Card Refund or Refund, enter a clearing account. If the activity type is Miscellaneous Cash and the GL Account Source is Distribution Set, then skip to the next step. You cannot enter both an Activity GL Account and a Distribution Set. If your activity type is Miscellaneous Cash, enter a Distribution Set, or select from the list of values. You use distribution sets to automatically distribute miscellaneous cash across various accounts.
Suggestion: Specify a distribution set for your Miscellaneous Cash activities to properly distinguish them from your invoice-related activities. Distribution sets If the activity type is Miscellaneous Cash and you specified a Tax Rate Code Source of Activity, then select Asset and Liability tax rate codes.
If the selected operating unit has multiple legal entities, then select tax rate codes for each legal entity. The Asset tax rate code is your collected tax account (tax received); use this tax rate code to account for tax on miscellaneous receipts. The Liability tax rate code is your deductible account (tax paid); use this tax rate code to account for tax on miscellaneous payments.
Usage of Receivable activities
Distribution Sets
Define distribution sets to account for your noninvoice related receipts. These receipts can include refunds, revenue from the sale of stock, as well as interest and investment income. Receipts that are not related to an invoice are known as miscellaneous receipts in Receivables.
Distribution sets are predefined groups of general ledger accounting codes that determine the credit accounts for positive miscellaneous receipt amounts and the debit accounts for negative receipt amounts. Distribution sets also let you speed your receivables accounting by reducing time spent on data entry. You can also use distribution sets to apply percentages of other receipts to different accounts. You can create an unlimited number of distribution set lines for each distribution set. The total distribution lines must equal 100% before you can save your distribution set. Receivables displays active distribution sets as list of values choices in the Transactions and Receivables Activities windows. You can make a distribution set inactive by unchecking the Active check box, and then saving your work.
Aging Buckets
Aging buckets are time periods you can use to review and report on your open receivables. For example, the 4Bucket Aging bucket that Receivables provides consists of four periods: 999 to 0 days past due, 1 to 30 days past due, 3161 days past due, and 6191 days past due.When you create your Collections reports or view your customer accounts, you can specify an aging bucket and as of date, and Receivables will group the transactions and their amounts in the appropriate days past due period. You can define an unlimited number of aging buckets and lines (time periods) within an aging bucket. However, all Receivables aging reports include a maximum of the first seven time periods for an aging bucket. If you want to report on additional time periods, you must create custom aging reports. You can also customize the aging buckets that Receivables provides. Aging buckets that you define here appear as list of values choices in the Aging, Print Statements, and the Print Collection Reports windows. You can make an aging bucket inactive by changing its status to Inactive and then saving your work.
Collectors
Receivables lets you define collectors and assign them to a profile class or to a customers credit profile class. When you assign a collector to a profile class, that collector becomes the collector for all
customers assigned that profile class. You can modify collector assignments for your customers in the Customers window and for your profile classes in the Customer Profile Classes window. You can also print collector names and telephone numbers on dunning letters you send to your customers for past due items. Receivables displays active collectors and their descriptions as list of values choices in the Customers, Customer Profile Classes, and Customer Calls windows. Receivables does not display inactive collectors in the list ofvalues for these windows. You can make an existing collector inactive by unchecking the Active check box and then saving your work. If the collector you want to make inactive is associated with an active customer, Receivables displays a warning message.
To define a collector: 1. Navigate to the Collectors window. 2. Enter a Name and Description for this collector. For example, enter the collectors first name in the Name field and full name in the Description field. 3. Enter a Correspondence Name and Telephone Number for this collector (optional). This information appears on your dunning letters if you enter it when formatting your dunning letters. 4. If you use the Credit Memo Request Approval workflow, enter the collectors employee name or select it from the list of values. Receivables uses this information to ensure that the collector is also an employee and therefore can
receive workflow notifications. 5. Save your work. Home Account Receivables Setting Up
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Sales Tax Location - Can have more than 1 structure Territory Flexfield - one structure CUSTOMER_TERRITORY_FLEXFIELD
System Options
Define system options to customize your Receivables environment. During Receivables setup, you specify your accounting method, set of books, tax method and accounts, customer and invoice
parameters, and how the AutoInvoice and Automatic Receipts programs will run. If you are planning to use the Bills Receivable Workbench, then you need to perform the necessary implementation steps and enable Bills Receivable. Prerequisites Define your set of books. Define your AutoCash Rule sets. Define Grouping Rules. Define Key Flexfield Segments - Location, Territory.
Accounting System Options Use the Accounting tabbed region to specify an accounting method and set of books and define your accounting flexfields. You can also choose whether to use automatic journal import, enable header level rounding, and specify how many days should be included in each posting cycle. 1. Enter the Accounting Method to use for your set of books. Enter Accrual if you want your billing system to record revenue from invoices, debit memos, and chargebacks. When you use this method, Receivables debits your cash account and credits your receivables account upon payment of a debit item. Enter Cash Basis to recognize revenue at the time you receive payment for an invoice, debit memo, or chargeback. Receivables debits cash and credits revenue when using the Cash Basis method. Attention: Once you enter and save this information, you cannot update your Accounting Method.
2. If your accounting method is Accrual, enter your Realized Gains and Realized Losses Accounts. Receivables posts changes in your functional currency to your Realized Gains or Losses account in your general ledger if there are differences in exchange rate gains or losses. For example, if the exchange rate for a foreign currency invoice is 1.7 and the exchange rate of your payment for this invoice is 2.0, Receivables posts the difference as a gain to your Realized Gains account. Receivables provides descriptions of each segment, verifies that all flexfield segments are active, and ensures that you enter a valid combination. 3. Enter the Tax Account to use as the default value in the Tax Codes and Rates window. 4. If your accounting method is Cash Basis, enter your Unallocated Revenue Account. Receivables uses this account when you apply a cash receipt with a balance other than zero to an invoice with a zero balance. 5. Enter a Cross Currency Rounding Account. Receivables uses this account to record any rounding error amounts created during a cross currency receipt application for currencies that have a fixed rate relationship. You need to define a rounding error account if you create cross currency receipts. 6. Define a Header Rounding Account and enable Header Level Rounding (optional). Receivables uses this account to record any rounding differences that occur when converting foreign currency transactions to your functional currency. Warning: After you enable Header Level Rounding and save your work, you cannot disable the feature. 7. To import the batches of transaction records that you post into your general ledger, check the Automatic Journal Import box. The value you enter becomes the default value for the Run GL Journal Import field in the Run General Ledger Interface window. 8. Enter the number of Days per Posting Cycle. This lets you process the transactions you are posting in smaller groups to ensure that you do not run out of rollback space during posting. For example, if your accounting period is 30 days and you set this value to 30, the posting program uses only one cycle. If your accounting period is 30 days and you set this value to 17, the posting program uses two cycles. We recommend that you set this field to a value that is less than the number of days in your accounting period.
Tax System Options Transactions and Customers Miscellaneous System Options
Tax System Options

Use the Tax tabbed region to define how Receivables calculates taxes. You specify your tax method, the Location Flexfield Structure to use to determine your taxes for different customer locations, and whether to compound taxes for your customers. You can also choose to recognize tax exception rates for customers, customer sites, specific locations, and products, and whether exemptions that you define for specific products or customers should take precedence.
1. Open the Tax tabbed region, then enter your Tax Method. Choose either Sales Tax or Value Added Tax. Receivables uses this tax method, along with the value you entered for the Calculate Tax field assigned to your transaction type, to determine whether to calculate tax for your transactions.
2. Enter your sales tax Location Flexfield Structure. You can use this to validate customer addresses as well as calculate sales tax based on your customers shipping address. Alternatively, you could perform address validation using flexible address formats
3. Enter the Postal Code Range that you want to be the default value when entering sales tax rate assignments in the Tax Locations and Rates window.
4. If you are not using a flexible address format for validation, enter the type of Address Validation to use. This option is only valid for addresses in your home country. Enter one of the following:
Error: Receivables displays an error message when you enter an invalid address format. If the location combination does not exist for the customers ShipTo address, Receivables displays an error message and prevents you from saving the record. In this case, you must manually add the location in the Tax Locations and Rates window before you can save the address.
Suggestion: If you choose Error, Receivables displays a list of values to help you select specific components when entering a new address. For example, if you enter New in the City field and then press Tab or Return, Receivables displays all cities prefixed with New such as New York, New Brunswick and New Bedford. (Receivables derives this information from locations that you previously entered or imported.)
Warning: Receivables displays a warning message if a tax rate or location is not defined for this address. However, you can save the record. Receivables creates locations that were not defined but does not create the corresponding rates for these new locations.
No Validation: Receivables does not validate the address. This validation level lets you save an address without displaying an error or warning message, even if all of the locations do not exist. If these locations do not exist, then Receivables creates them for you but does not create the corresponding rates for these new locations.
5. To compound taxes in Receivables, check the Compound Taxes box. Compound taxes are taxes that are based on other taxes. If you check this box, Receivables lets you assign precedence numbers to your tax lines when entering invoices.
6. Enter the Invoice Printing method to use. This is the method Receivables will use when printing tax amounts on your invoices. The value you enter here becomes the default for your customer profile classes. Choose one of the following methods: European Tax Format: Print tax information in the following format: Tax rates printed as the
last column of invoice lines, freight items printed last, and the taxable amount with the summarized tax codes printed at the end of the invoice. Itemize By Line: Itemize tax information for each invoice line. Receivables displays this information after each invoice line. Itemize and Summarize: Display both itemized and recap tax information. Summarize by Tax Code: Display all tax information under the heading Tax Summary by Tax Code. If you have two tax lines with the same tax code, rate, exemption, and precedence number, Receivables will group them together. Summarize By Tax Name: Display all tax information under the heading Tax Summary by Tax Name. If you have two tax lines with the same tax name, rate, exemption, and precedence number, Receivables will group them together. Total Tax Only: Display only the total tax amount at the bottom of the document. If you charge your customers tax and want to print a registration number on their invoices, enter a Tax Registration Number.
7. Enter the Tax Vendor Views to use to calculate tax, or select one from the list of values. Receivables provides a Tax Vendor Extension to integrate external tax calculation programs with Oracle Applications. If implemented, the Tax Extension returns a tax rate or amount from the vendor program whenever you manually enter, import, or copy transactions in Receivables. Enter Oracle if you are not implementing a tax vendor extension and want to calculate tax using the tax engine
8. Check the Inclusive Tax Used box if you use inclusive tax codes (optional). This option determines at what point Receivables updates the total line amount in the Lines window when you add, update, or delete a tax line. If this option is Yes, Receivable does not update the Lines total until you save your work; otherwise, Receivables enters a null value when you make the change, then updates the total when you save your work.
TAX Defaults & Rules
1. Define your Tax Code Defaults and hierarchy by checking the appropriate boxes and entering a sequence number for each. This hierarchy determines the order in which Receivables derives a default tax rate when you manually enter transactions or import them using AutoInvoice.
For example, if Tax From Customer Site is Yes and you specify that it is number 1 in the hierarchy, Receivable will first check if a tax rate is defined to the customer site for this transaction. If no tax rate exists at this site, Receivables looks at the next location in the sequence, and so on. Customer Site: Use the tax rate defined at the customer address level. Customer: Use the tax rate defined at the customer level. Product: Use the tax rate defined at the item level. Revenue Account: Use the tax code assigned to the natural account segment of your Revenue account. System Options: Use the tax code that you entered in the System Options window.
2. If your Tax Method is VAT, enter a default Tax Code (optional). 3. Define your Exception Rates by checking the appropriate boxes: Use Customer Exemptions: Check this box to include customer exemptions when calculating tax for your transactions. Use the Tax Exemptions window to exempt customers and items from specific tax. If you do not check this box, you cannot set the Default Tax and the Tax fields in the Transaction window to Exempt. Use Item Exemptions: Check this box to include item exemptions when calculating tax for your transactions. Use the Tax Exemptions window to exempt customers and items from specific tax. Use Item Tax Rate Exceptions: Check this box to use the tax rate you defined for specific products based on the customers ShipTo address. Use the Item Tax Rate Exceptions window to enter tax rates for specific items based on ShipTo address.
Transactions and Customers

Receivables lets you define several options for your invoices and use of the AutoInvoice program. You can choose whether to allow updates to printed invoices and whether you can apply payments to an unrelated customers transactions. Receivables lets you define the segments to use for Accounting Flex Tuning, System Items Tuning, and Territory Tuning during AutoInvoice.
You can also specify whether to purge the interface tables that you use for AutoInvoice, the maximum number of bytes to use, whether SQL Trace is active for this program, and the grouping rule to use for the revenue and credit transactions you create through AutoInvoice. You can also specify whether to allow reciprocal relationships between customers.
1.1 To allow updates to transactions that have been printed, check the Allow Change to Printed Transactions box. This option also determines whether you can update a customers address when printed, posted, or applied transactions are assigned to that address. Attention: You cannot update a transaction if it has activity against it, regardless of how you set this option. Examples of activity include payments, credit memos, adjustments, and
including the transaction on a consolidated billing invoice.
1.2 To allow transactions to be deleted from Receivables after they have been saved, check the Allow Transaction Deletion box. If you set this option to Yes, you can still specify at the responsibility level which users can delete transactions by using function security. Setting this option to No prevents all Receivables users from deleting transactions; this is a requirement for installations that are legally required to number transactions sequentially with no missing transaction numbers.
1.3 To allow receipt applications to debit items of unrelated customers, or to allow bills receivable assignments to transactions of unrelated customers, check the Allow Payment of Unrelated Transactions box. If you check this box, Receivables lets you select debit items for unrelated customers and apply your receipts to them in the Applications window, and lets you select transactions of unrelated customers and assign them to bills receivable in the Assignments window or the Bills Receivable Transaction Batches window.
2.1 Enter the Accounting, System Items, and Territory Flexfield segments that are most often selected by AutoInvoice. Receivables uses this information to increase AutoInvoice performance.
2.2 To activate SQL trace for AutoInvoice, check the SQL Trace box. 2.3 Enter the Maximum Memory (in bytes) to allocate to AutoInvoice for validation. For best results, enter a value that is the maximum number of records that you import (rounded to an even number) multiplied by 1024. For example, if you use AutoInvoice to import no more than 100 records at a time, enter a value of 102400.
2.4 To automatically purge the AutoInvoice Interface tables after running AutoInvoice, check the Purge Interface Tables box. If you check this box, Receivables deletes the records that have successfully transferred into permanent Receivables tables. Do not check this box if you want to submit the AutoInvoice Purge program manually after running AutoInvoice.
2.5 Enter a Log File Message Level. This number (from 0 to 3) indicates the amount of detail you want AutoInvoice to display in the AutoInvoice log file. The higher the number, the greater the detail.
3.1 To automatically assign a unique number to every new customer, check the Automatic Customer Numbering box. Do not check this box if you want to manually assign customer numbers. Your Oracle Applications system administrator or developer can specify the initial
number to be used for Automatic Customer Numbering. Switch to the Application Developer responsibility. In the Navigator window select Application, then Database, and finally Sequence. In the Name field of the Sequences window, query for HZ_ACCOUNT_NUM_S. In the Start Value field of the Sequences window, enter the intitial number to be used for Automatic Customer Numbering
3.2 To automatically assign numbers to your customers business purposes, check the Automatic Site Numbering box. Suggestion: If you do not check the Automatic Site Numbering box, you can provide descriptive location names for your business purposes. For example, your customer has several addresses, but they want all invoices to be sent to their office in Chicago. For the Bill To business purpose, enter a location name of ChicagoBill To Site Only. This will help you identify the correct address to enter when creating invoices.
3.3 To automatically create a reciprocal relationship between two customers when you are defining customer relationships, check the Create Reciprocal Customer box. A reciprocal relationship is one in which related customers can apply payments to each others invoices.
3.4 Enter the default Grouping Rule Name you want AutoInvoice to use. AutoInvoice uses grouping rules to group revenue and credit transactions into invoices, debit memos, and credit memos.
Miscellaneous System Options

Use the Miscellaneous tabbed region to specify your split amount and the number of days to use for your Days Sales Outstanding (DSO) Calculation in the Collection Effectiveness Indicators Report. You can also choose whether you require a billing location, salespersons, and remit to addresses with your receipts, define the system level maximum writeoff amount for receipts, specify a chargeback due date, define your Automatic Receipts submission parameters, choose a default Application Rule Set, and set the Sales Credit Percent Limit.
Split Amount Discount basis Application rule set AutoCash Rule Set
Days in DSO (Days Sales Outstanding) Calculation Sales Credit Percent Limit Write-off Limits per Receipt
Accrue Interest Allow Unearned Discounts Dicsuount of parial Payment Bills Receivable enabled Require Sales person
Bank account payment method Credit card payment method
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Tax Basics, Code and Group

The word tax has two meanings: first, the financial duty or levy contributed to the entity (be it a government or any other organization) a person or group of persons (say, a business) is part of. The second definition is "a very heavy burden" and can essentially summarize the first definition. While there are opposing views on imposing tax, the general idea is that taxes are used to fund projects that can benefit society as a whole, or at least the majority of it. Businesses are taxed by the state because they use government-owned infrastructures and services. Individuals are taxed as part of their social contract, i.e., their rights and responsibilities as citizens of the state. Tax is what John F. Kennedy called "the annual price of citizenship." India has a well developed Tax structure with a threetier federal structure, comprising of the Union Government, the State Governments, and the urban/rural local bodies. The power to levy taxes and duties is distributed among the three tiers of governments, in accordance with the provisions of the Indian Constitution
The main taxes/duties that the Union Government is empowered to levy are Income Tax (except tax on agricultural income, which the State Governments can levy), Customs duties, Central Excise and Sales Tax(CST)(VAT is used in place of sales tax), and Service Tax.
The principal taxes levied by the State Governments are Sales Tax (tax on intraState sale of goods), Stamp Duty (duty on transfer of property), State Excise (duty on manufacture of alcohol), Land Revenue, Duty on Entertainment and Tax on profession and callings. Local bodies are empowered to levy tax on properties, Octroi, Tax on Markets, and tax/user charges for utilities like water supply, drainage, etc. Types of taxes 1. DIRECT TAXES 1.1 Income tax : An income tax is tax levied on financial income of person co-operation or other legal entity. 1.2 Wealth tax 1.3 Property tax etc. 2. INDIRECT TAXES 2.1 Custom duty : Custom Duty Is A Tax Which A State Collects On Goods Imported Or Exported Out Of The Boundaries Of The Country In India, Custom Duties Are Levied On The Goods And At The Rates Specified In The Schedules To The Custom Tariff Act, 1975. Customs is an authority or agency in a country responsible for collecting and safeguarding customs duties and for controlling the flow of goods including animals, personal effects and hazardous items in and out of a country. Depending on local legislation and regulations, the import or export of some goods may be restricted or forbidden, and the customs agency enforces these rules.The customs LEBA may be different from the immigration authority, which monitors persons who leave or enter the country, checking for appropriate documentation, apprehending people wanted by international arrest warrants, and impeding the entry of others deemed dangerous to the country. A customs duty is a tariff or tax on the import of or export of goods. 2.2 Excise duty : Excise duty is an indirect tax levied and collected on goods manufactures in india. An excise is an indirect tax, meaning that the producer or seller who pays the tax to the government is expected to try to recover the tax by raising the price paid by the buyer (that is, to shift or pass on the tax). Excises are typically imposed in addition to another indirect tax such as a sales tax or VAT. In common terminology (but not necessarily in law) an excise is distinguished from a sales tax or VAT in three ways: (i) an excise typically applies to a narrower range of products; (ii) an excise is typically heavier, accounting for higher fractions (sometimes half or more) of the retail prices of the targeted products; and (iii) an excise is typically specific (so much per unit of measure; e.g. so many
cents per gallon), whereas a sales tax or VAT is ad valorem, i.e. proportional to value (a percentage of the price in the case of a sales tax, or of value added in the case of a VAT). Typical examples of excise duties are taxes on gasoline and other fuels, and taxes on tobacco and alcohol (sometimes referred to as sin taxes). 2.3 Sales tax/Vat: Sales tax is a tax on the supply of goods and certain services ,it is charged at the time of sale and then deposited in the Government treasury. Vat Paid By Dealers On Their Purchases Is Usually Available For Set-off Against The Vat Collected On Sales. Under The Vat, The Tax Rates Have Been Simplified:
4% For Items Consisting Mainly Of Raw Materials Used In The Manufacturing Process 12.5% For All Goods Unless They Are Listed Under The Other Rates.
Foodgrains Including Pulses, Milk, Vegetables Books are Not Subject To Vat.
WHAT TYPES OF BUSINESS ARE NOT LIABLE FOR SALES TAX?
Agricultural Products Most Of Pharmaceutical Products Educational & Scientific Materials Equipment For Fighting AIDS & CANCER
3. Service Tax: Service tax is an indirect tax levied under the Finance Act, 1994, as amended from time to time, on specified services. At present, there are approximately 96 categories (including 15 new services introduced by Budget 2006) of net services taxable under the service tax.
Reviewing Sales Tax Rates Tax Authorities Tax Codes and Rates Tax Exemptions Tax Locations and Rates
Reviewing Sales Tax Rates

Posted Wed, 02/17/2010 - 19:09 by Anonymous
Use the Review Sales Tax Rates window to review your existing sales tax rates. Receivables creates these sales tax rates when you enter customer addresses in the Customers window. You can view the locations and associated rates for your customer addresses in the Tax Locations and Rates window. If you have a situation where locations are defined without rates and these locations are included in existing authorities, Receivables also creates sales tax rates when you assign rates to these locations.
If you update rates belonging to locations that are already included in an authority, Receivables automatically updates all of the sales tax rates that are associated to this
authority. You can review the changes in this window. The number of sales tax rates created for each authority depends upon the postal code and date ranges that you assigned to each location included in your authority.
The following example demonstrates the criteria that Receivables uses to create sales tax records for your customer addresses. In the table below, you have the following locations and rate assignments defined in Receivables where CA is the state of California, San Mateo is a county within California, and Foster City and Belmont are cities within San Mateo county:

Receivables only calculates sales tax rates for authorities that exist within your home country. For example, if you set up your sales tax system to handle business in the United States but you enter addresses in a foreign country, Receivables does not create locations, authorities, or sales tax records.
Tax Authorities
Tax Authorities represent a unique combination of locations and are created manually through the Tax Authorities window or automatically when you enter customer addresses. Receivables uses authorities to expedite sales tax calculations.
When you enter a customer address, Receivables first checks if this authority already exists for the appropriate date range. If it exists, Receivables uses the combined sales tax rate associated with this authority to calculate any tax amounts. If the authority does not exist, Receivables first checks if the locations and associated rates exist. If they exist, Receivables creates the authority and all of the sales tax rates. If the locations do not exist, Receivables creates the authority and the locations in the Tax Locations and Rates window.
You can also implement country specific validation of foreign customer address information using Flexible Address Formats. You can disable an existing tax authority either by unchecking the Enabled check box or entering an ending effective date, and then saving your work.
Home Account Receivables Setting Up Tax Basics, Code and Group
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Tax Codes and Rates

Use the Tax Codes and Rates window to enter and maintain your tax codes and their associated tax rates. You can define as many tax codes of type VAT (Value Added Tax) or Sales Tax as you need. You can have only one enabled tax code of type Location for any given date range. This code cannot have a rate associated with it. You can enter a tax code at the customer Ship-To and Bill-To business purpose level, as well as at the customer level. You can also assign tax codes to inventory items. If your tax method is VAT, you can include a tax code in the Tax Defaulting Hierarchy in the System Options window. You can specify whether a tax code (with its tax rate):
is enabled allows tax exemptions displays line amounts inclusive or exclusive of tax lets you modify the tax rate when entering transactions lets you change a tax code from tax inclusive to tax exclusive when entering transactions appears in the list of values in Receivables windows Displayed or not
Tax codes that you define appear on your tax reports, in the Tax windows when you enter transactions, and in the Tax Groups window when you define your tax groups.
To define a tax code: Navigate to the Tax Codes and Rates window. and Enter a unique name for this Tax Code. 1. Choose a Tax Type. If you are using location based tax, you can only enter one enabled tax code with tax type of Location Based Tax for a given date range. Receivables displays subtotals by tax type in various tax reports. You can define additional tax types in the Receivables Lookups window. 2. Specify a Taxable Basis to control how Receivables calculates tax on transactions assigned to this tax code. Choose one of the following:
After Discount: Calculate tax on the invoice line amount, after any early payment discount is taken. Before Discount: Calculate tax on the invoice line amount, before any early payment discount is taken. Quantity: Calculate tax based on the quantity ordered and unit of measure of the invoice line. If you choose this option, specify a Tax Amount. PL/SQL: Calculate tax using the PL/SQL formula that you specify. Prior Tax: Select this option if you use this tax code as part of a tax group (to calculate multiple taxes) and you want to calculate tax on only the tax for the previous tax line.
2.1 If the tax type is not 'Location Based Tax' and you specified a taxable Basis of either After Discount or Before Discount, enter a Tax Rate.
2.2 If the Taxable Basis is Quantity, enter a Tax Amount. For example, you enter a Tax Amount of 2 for this tax code. If you create an invoice line with a quantity of 7 and assign this tax code to it, Receivables calculates tax of $14 for this line. 2.3 Indicate whether this tax code is positive or negative by setting the Sign parameter to either 'Cr' or 'Dr', respectively. When you use a tax code with a sign of 'Dr' (negative), Receivables debits your tax account. When you use a tax code with a sign of 'Cr' (positive), Receivables credits your tax account. 2.4 If the Taxable Basis is PL/SQL, enter the name of a PL/SQL stored procedure in the Formula field. Receivables uses this stored procedure to calculate tax when you assign this tax code to a transaction. 3.1 Open the Effective region, and then enter a range of Effective Dates for this tax rate. The default start date is today's date, but you can change it. If you do not enter an end date, this tax rate will be valid indefinitely. 3.2. To disable this tax code, uncheck the Enabled box. You can have multiple disabled tax codes for the same date range.
4.1. Open the Control region, then choose a Tax Class. Choose Output to use this tax code with invoices, debit memos credit memos, adjustments, discounts, finance charges and miscellaneous cash receipts. Choose Input to use this tax code with miscellaneous cash payments (negative receipts). Input tax codes appear only in the list of values for the Liability Tax Code field in the Receivables Activities window; output tax codes appear in all Receivables transaction and set up windows. Note: Receivables also displays subtotal amounts by tax class in various tax reports.
Note: To define tax codes for use in Oracle Payables, use the Payables Tax Codes window. 4.2. To allow tax exemptions for items using this tax code, check the Allow Exempt box. 4.3. To be able to change the tax rate for this tax code in the Transaction windows, check the Ad-hoc box. You can only check this box if the tax type is not 'Location Based Tax.' You can update this option after you save this tax code. 4.4. If you want this tax code to automatically display line amounts including tax, check the Inclusive Tax box. 4.5. If you do not want to be able to change this tax code from inclusive to exclusive (or vice versa) when entering invoices, uncheck the Allow Inclusive Override box. Note: Location-based tax codes are always tax exclusive and you cannot change them to be tax inclusive. 4.6. To prevent this tax code from appearing in Receivables windows, uncheck the Displayed box. If this box is not checked, you cannot assign this tax code to individual transactions. Suggestion: If you want to be able to use this tax code only within a tax group, uncheck this box. 5. To update the Tax Account assigned to this tax code, open the More tabbed region. The default account is the Tax Account you defined in the System Options window. AutoAccounting uses this value if the AutoAccounting structure for your tax account is derived from the tax code. 5.2. Enter the Printed Tax Name as you want it to appear on printed transactions. 5.3. Enter a description for this tax code (optional). Receivables displays this information in countryspecific reports as required. 5.4. Enter a VAT Transaction Type (optional). This field is used for Spanish and Belgian Tax reporting. 6. To define additional tax accounting for this tax code, choose the Tax Accounting button. See: Defining Tax Accounting for Tax Codes and Locations.
Tax Groups
Home Account Receivables Setting Up Tax Basics, Code and Group Tax Codes and Rates
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Tax Groups
Use the Tax Groups window to group multiple, conditional taxes. Tax groups let countries with multiple taxes automatically calculate each applicable tax within Receivables and Oracle Order Management. For example, Canada has two types of taxes: Goods and Services Tax (GST) and Provincial Sales Tax (PST). GST is a federal sales tax that is applied for all shipments, and has one standard tax rate. PST is applied at the provincial level and has a different tax rate for each province. Similarly, India has multiple taxes, both government and state sales tax applies, and the state tax rate is controlled by the shipto address. When you implement VAT and Canadian Tax, you should assign tax codes or tax groups at the Customer and/or Item Levels.
Compound Tax Tax groups support compounded tax rates within the group. Compound tax enables you to calculate multiple taxes for a transaction.
To compound tax, specify an order of precedence for each tax code in the group. Once set up, Receivables automatically calculates the compounding of multiple taxes within the group when you assign it to a transaction. Tax groups can also contain multiple independent branches of compounded tax. Within each
compounding branch, Receivables adds tax to the original amount, so each subsequent tax line within the branch calculates tax on the new taxable amount. Receivables then adds the tax for each compounding branch to determine the total tax amount. Attention: A compounding branch within a Tax Group can contain either inclusive or exclusive tax codes, but not both. Additionally, only one compounding branch in a Tax Group can have inclusive tax codes. Note: Tax groups consisting of tax inclusive tax codes cannot contain some tax codes with a Taxable Basis of After Discount and some with a Taxable Basis of Before Discount. Inclusive Tax Inclusive tax codes include the tax for a transaction line in the line amount, rather than displaying these amounts separately. Certain restrictions apply when using inclusive tax codes in compounding branches of a Tax Group. Note: If you override a tax code, Receivables preserves the override across all updates to the invoice. Similarly, changing the shipto address or the line item could change the default tax code.
Tax Exemptions
Define tax exemptions to fully or partially exempt a customer, item, or range of items from specific tax codes. You can create exemptions against customers or items for either locations or specific tax codes. To use customer exemptions, set the Use Customer Exemptions system option to Yes. To use product exemptions, set the Use Product Exemptions system option to Yes. To exempt customers or products from tax codes with a type of VAT or Sales, set the appropriate Use Tax Code system option to Yes. To exempt a customer from all taxes, use the Customers window to assign this customer to a tax code with a zero tax rate. To exempt an item from all taxes, use the Items window to assign this item to a tax code with a zero tax rate. You can only define a tax rate exemption for items that can be entered on an invoice and have a status of Active. In addition, if you create more than one exemption for the same customer, item, tax code, reason, or certificate number, the date ranges of these exemptions cannot overlap. You can also use the Tax Exemptions window to update the status of your exemptions. If you need to add an exemption number to an Unapproved exemption created in the Transaction window, you must change the status of this exemption to Expired and recreate the exemption with the number.
Tax Locations and Rates

Use the Tax Locations and Rates window to enter and update your locations and their associated tax rates. For each location you can define multiple tax rates and postal code ranges, as long as the date and postal code range do not overlap. Receivables uses these locations and tax rates to create authorities and sales tax rates for tax calculations. Receivables also uses locations to validate your customers addresses. Use this window to assign tax accounts to the components of your segment that has a tax account qualifier assigned to it. You assign a tax account qualifier to any one segment of your location flexfield structure using the Key Flexfield Segments window. You can also implement countryspecific validation of foreign customer address information using the Flexible Address Formats feature. If you do not want to manually enter or maintain location and tax rates, you can use the Sales Tax Rate Interface program to load this information from an outside tax service
Defining Tax Accounting for Tax Codes and Locations
Defining Tax Accounting for Tax Codes and Locations

Use the Tax Accounting window to enter additional accounting information about your tax codes and tax locations. You can specify expense, revenue, and nonrecoverable accounts for your adjustment, finance charge, and earned and unearned discount activities. You can also use the Tax Accounting window to set up deferred tax, an accounting method in which tax is due when payment is applied to an invoice, rather than when the invoice is created.
If you use tax codes, use the Tax Accounting window to assign tax accounts to your tax codes. If you use locationbased tax, use the Tax Accounting window to assign tax accounts to your tax locations. To record tax on adjustments, discounts, and finance charges, specify an expense or revenue account and a nonrecoverable account. The nonrecoverable account
records decreases in the total amount of tax that you collect for activities that the government does not consider a legitimate tax deduction. Suggestion: You can define regular or deferred tax accounting for existing tax codes. To do this, select the tax code to modify, then disable it by entering the current date in the To field. Create a new record, then choose Duplicate Record Above from the Edit menu. Enter a new effective date range then define additional tax accounting for this tax code.
To use deferred tax accounting, use the Tax Accounting window to specify an Interim Tax Account. When you create an invoice, Receivables accounts for the liability in the Interim Tax Account. When you apply a payment to the invoice, Receivables automatically transfers the tax liability to the Tax Account. Attention: If you are upgrading from a previous release of Oracle Receivables, you cannot update the tax accounting for transactions that have a status of complete. Once a transaction is complete, Receivables creates all corresponding accounting entries and does not let you enter a different tax code or modify the existing accounting information.
Customer & Party

A party is an entity that can enter into business and can be of the type Organization or Person. A
party exists separately from any business relationship that it enters in to with another party. Information about a party such as addresses and contacts can be shared with the customer accounts of the party. For example, Vision Distribution could be a party within your trading community. A customer is an organization or person with whom you have a selling relationship. This selling relationship can result from the purchase of products and services or from the negotiation of terms and conditions that provide the basis for future purchases. For example, a division of Vision Distribution could become one of your customers. A customer account represents the business relationship that a party can enter in to with another party. The account has information about the terms and conditions of doing business with the party. For example, you could open a commercial account for purchases to be made by Vision Distribution for its internal use and a reseller account for purchases made by Vision Distribution for sales of your products to endusers .
You can create multiple customer accounts for a party to maintain information about categories of business activities. For example, to track invoices for different types of purchases, you can maintain an account for purchasing office supplies and another account for purchasing furniture.
You can also maintain multiple customer accounts for a customer that transacts business with more than one line of business in your organization. You maintain separate customer profiles, addresses, and contacts for each customer account.
A customer address is a party site used in the context of a customer account for billing, shipping, or other purposes. Both Party and customer acount are OU independant where as customer address is OU Specific. A party site is the location where a particular party is physically located. Every party has only one identifying address, but a party can have multiple party sites.
TCA Bascics A relationship is defined by the characteristics or terms and conditions of that relationship. The party model flows through the entire e-business suite. There is just one record to represent both prospect and customer. The entity itself is recorded, such as a person or an organization. Before the customer terms are established that record represents a prospect and after the customer terms defined its a customer. The party model contains a unique set of information about a person, organization, or relationship. The tables store information such as parties, address, and bank accounts. You can interact with the party model through the following 1. 2. Customer forms: Online entry and query of party and customer account information. Party interface: Batch load of party information
Managing Customer
Collectors 1. Profile Classes 2.1 Entering Parties and Customer Accounts 2.2 Enter a new Customer information
3. Profile:Transaction Prerequisites - Customers
Home Account Receivables Customer & Party
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Collectors
Posted Sat, 12/27/2008 - 02:48 by Anonymous
Receivables lets you define collectors and assign them to a profile class or to a customers credit profile class. When you assign a collector to a profile class, that collector becomes the collector for all customers assigned that profile class. You can modify collector assignments for your customers in the Customers window and for your profile classes in the Customer Profile Classes window.
You can also print collector names and telephone numbers on dunning letters you send to your customers for past due items. Receivables displays active collectors and their descriptions as list of values choices in the Customers, Customer Profile Classes, and Customer Calls windows. Receivables does not display inactive collectors in the list of values for these windows.
1. Profile Classes
We can use Customer Profiles to group customer accounts with similar credit worthiness, business volume, and payment cycles. For each profile class you can define information such as credit limits, payment terms, statement cycles, invoicing, and discount information. You can also define amount limits for your finance charges, dunning, and statements for each currency in which you do business.
Navigation to create a profile classes AR -> customer -> Profile classes
Every customer account must be assigned to a profile class. A profile class defines several default values for customer accounts with similar credit terms and invoicing requirements. After an
account has been created, the default value can be modified based on the specific characteristics of that customer account or account site. Credit Check: Oracle Order Management will check the customers credit before creating a new order, if you select the Credit Check box, and if the Payment Term and the Order Type associated with the order also require credit checking. Receivables does not check your customers credit when you create transactions in Receivables. If credit checking is active for your customer and the customer exceeds its credit limit, then all new orders for the customer are put on hold in Order Management, and Order Management automatically initiates a credit review request.
If the credit analyst determines that a customer should be placed on credit hold, then Credit Management automatically updates the Credit Hold check box in the Customer Accounts window. Attention: If you use Credit Management, then you should not update the Credit Hold check box in the Customer Accounts window. After you place the credit hold, you cannot create new orders in Order Management, nor can you create invoices for this customer in Oracle Projects. However, you can still create new transactions for this customer in Receivables.
Profile classes are attached to the customer in profile: transaction tab of customer site and is also available in classification tab.
You can move a customer account from one profile class to another whenever it is deemed necessary. To change the profile class, find the account and then select the new profile class from the list of values under the profile transaction tab in the customer window. You can also assign profile classes at the site level of the customer if there is a saved and active bill-to business purpose. Updating a Customer Profile Class You can modify an existing customer profile class in the Customer Profile Classes window. When you modify profile class information using this window, Receivables requires that you indicate whether and
in what way your changes will affect other customers using this profile class. To update profile class information for a specific customer, use the Customers window. Oracle Receivables displays a popup window that lets you decide how to apply your changes. Choose one of the following options: Do Not Update Existing Profiles: Choose this option if you do not want to update existing customer profiles with your new profile class values. When you choose this option, Oracle Receivables only assigns the new profile values to new customers to whom you assign this profile class. Update All Profiles: Choose this option to update your new profile class values for all existing customers whom you previously assigned to this profile class. To preserve your customizations to a customers individual profile, this option does not update every field on a customers profile with values from the newly modified profile class; only the fields you changed for this profile class will affect your customers profile. When you choose this option, Oracle Receivables automatically generates the Update Customer Profiles report so you can review your changes. Update All uncustomized Profiles: Choose this option to update only customer profiles for which the corresponding options have the same original setting.
2.1 Entering Parties and Customer Accounts

To minimize the possibility of creating duplicate party or customer accounts, search parties or customer accounts before entering new accounts. In organizations with more than one person entering or maintaining customer account information, duplicate parties or customer accounts might be created. 1. The default procedure, enforced by the Find/Enter Customers window requires that a search, as described in the next section, must be completed before you can create a new customer account. You can set up your application to directly enter a new customer account by setting the Bypass Find/Enter Window profile option to Yes. Bypassing a search of existing parties or customer accounts before entering a new party or customer account is not recommended because duplicate parties or customer accounts could be more frequently entered.
At the bottom of the Find/Enter Customers window, you can select an Exact or a Fuzzy search type. The default search type is Exact. You can perform a fuzzy search if you enter at least one of these search criteria:
Name for an Organization customer account type First name and last name for a Person customer type Address Postal code First name and last name in the Contact region
2. If any customer exists then the below window 'll be shown
Notice the party number and customer number. There exists two customer numbers under party number number 100917 and customer number 32170890 has two different addresses and so is shown twice in the window. Note the following in the Match Results window:
The title bar of the Match Results window displays the Customer Type used for the search and the search criteria. If a party has multiple customer accounts, the party name displays (indented to the right) in the Name column next to each customer account. If the Identifying Address Flag check box is checked, then other party sites could exist for this party.
3. Create a new customer and party If no possible matches are found, click the New button to create both a new party and a new customer account at the same time. When you enter information about your customer both a new party and a new customer account are created. You do not have to separately create a new party and a new customer account.
Enter the new Party name, customer number and account name. Once the record is saved a new party number is automatically created. Click the Cancel button to return to the Find/Enter Customers wind.
4. Create a new customer against an existing party To create a new customer account for an existing party, highlight the row for that party, then click the
OK button.
New customer entery form opens with the existing organization number(party number). You can change the party name and customer number and enter a new account name. Save the record after entering all the details.
2.2 Enter a new Customer information

Following are the screenshots of the steps showing how to create a new customer. Take the Order Management/AR responsibility and go to customers -> standard Enter the name, customer number and account name
Click on Open and enter one address for the customer and save the record
Query the customer number in customer form.
3. Profile:Transaction
The following fields are in the Profile: Transaction, Profile: Document Printing, and Profile: Amounts tabbed regions of the Customer Addresses window. You can access these tabbed regions if you have assigned an active billto business purpose to the customer account address.
When a new customer is created the profile class DEFAULT is defaulted and can be changed later. Payment Terms: If you do not have a payment term assigned to the billto site use, the payment term assigned to the customer account or site profile defaults during transaction entry. If you do not assign payment terms to either your customer profile or site use, the payment terms assigned to the transaction type will default during transaction entry. You define payment terms in the Payment Terms window. Credit Classification: The credit classification that you assigned to this customer. The classification defaults from the assigned profile class, but you can change it. Customer Profile Lookups The following table lists customer profile lookup types. You can define lookups for these types in the
Receivables Lookups window.
Lookup names display as list of value choices throughout Oracle Applications to help speed data entry and accuracy. Receivables provides many lookups types for you. Some lookup types can be updated to suit your business needs. You cannot update a lookup type if Receivables requires those settings for its own internal use. For example, you cannot update attributes of the Tax Classification lookup type. You can create new lookup types and define as many additional lookups as you want in the Receivables Lookups window. For example, you can define additional lookups to the lookup type Collector Actions to describe your collection actions. Receivables displays these lookups as list of values choices for the Action field in the Call Actions window. You cannot change lookup name values after you save them. To remove an obsolete lookup you can: disable the code, enter an end date, or change the meaning and description to match a replacement code.
Prerequisites - Customers
1. Customer Numbering Check the box: Automatic Customer Numbering in System Options.
2. Collectors Receivables lets you define collectors and assign them to a profile class or to a customers credit profile class. When you assign a collector to a profile class, that collector becomes the collector for all customers assigned that profile class. You can modify collector assignments for your customers in the Customers window and for your profile classes in the Customer Profile Classes window. Read More @ http://www.oracleug.com/user-guide/order-management/collectors 3. Profile Class Use Customer Profiles to group customers with similar credit worthiness, business volume, and payment cycles. For each profile class you can define information such as credit limits, payment terms, statement cycles, invoicing, and discount information. You can also define amount limits for finance charges, dunning, and statements for each currency in which you do business. Read more @ http://www.oracleug.com/user-guide/account-receivables/1-profile-classes Home Account Receivables
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Transactions
Transactions, such as invoices, credit memos, receipts and adjustments, are entered against a customer account. Over time the customer's account evolves as new invoices are raised, credits and receipts are applied and adjustments are made. Paid invoices and their corresponding receipts are of no long-term interest in Receivables and disappear from the Aging Reports. However, each transaction will be posted to General Ledger and will have contributed to the receivables, revenue, tax, and cash balances.
Use the Transaction window to enter your invoices, debit memos, credit memos, and commitments. You can also query and update your transactions in this window and review your transactions and chargebacks in the Transactions Summary window. For a list of fields you can update. When you enter an invoice, Receivables uses your AutoAccounting rules to determine your default general ledger accounts. You can enter transactions one at a time or in a group called a batch. Your system administrator determines whether you can delete a transaction.
Note: You can view the detail accounting lines for existing transactions in the form of a balanced accounting entry (i.e. debits equal credits) by choosing View Accounting from the Tools menu. You can also choose to view the detail accounting as taccounts.
Chargebacks and adjustments @ http://www.oracleug.com/user-guide/account-receivables/chargebacks-and-adjustments
Invoices Crediting Transactions Entering Commitments Creating OnAccount Credits About Adjustments Auto Invoice Invoices with Rules Demo : Invoice Corrections Consolidated Billing Revenue Management
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Invoices
Each invoice lists what the customer has received and explains how the total invoice amount, which may include tax and freight charges, has been calculated. Invoices are entered in Oracle Receivables through the Transactions window or the Transactions Summary window, or they are imported through the AutoInvoice open interface. You must provide the customer number and bill-to address, the receivables account and freight account, and revenue and tax accounts for each invoice line. An invoice increases the customer's account balance by the invoice amount. Here are the accounting entries that would be created for a sample invoice amount of $125:
An invoice often has multiple revenue account lines. For example, an invoice from a hardware reseller for a PC server and installation shows two separate lines on the invoice. The PC sale and the installation service are posted to different revenue accounts Manually enter an invoice or a debit memo: Navigate to the Transactions window.
1.1. Enter the transaction batch Source for this transaction. The default is the source you entered at the batch level. If there is no batch information, you must enter a source. The transaction batch source specifies automatic or manual batch and invoice numbering and the standard transaction type. 1.2. If your batch source does not specify Automatic Invoice Numbering, enter a transaction Number. Otherwise, Receivables assigns a number when you save. If you are adding transactions to a batch,the transaction number must be unique within this batch. Attention: Once you save a transaction, you cannot update the transaction number. 1.3. Choose a transaction Type with a class of Invoice or Debit Memo. Transaction types determine whether a transaction updates your open receivables, can be posted to your general ledger, if Receivables calculates tax, the transactions creation sign, and whether transactions with this type use natural application only or will allow overapplication. The transaction type also provides the default transaction class, payment term, and printing options for each transaction. You can set up AutoAccounting to use transaction types when determining your general ledger accounts. If AutoAccounting depends on transaction type and you change this value, Receivables displays a popup window asking you if you want to recalculate all of your general ledger accounts. If you choose Yes, Receivables reruns AutoAccounting and makes the appropriate changes to your accounts (unless the transaction is a chargeback).
1.4. Enter the Date and Currency of this transaction. The default date is either the batch date or, if there is no batch information, the current date. The default currency is either the currency entered at the batch level or your functional currency, but you can change it to any currency that is defined in Receivables. If the currency is different from your functional currency, and you have not defined daily conversion rates, enter exchange rate information. Note: You can optionally account for rounding differences that can occur when you create foreign currency transactions by enabling: Header Level Rounding. 1.5 If the transaction batch source you entered has Post to GL set to Yes, enter the GL Date for this transaction. The default GL Date is the current date. However, if the current date is not in an open period, the default is the last date of the most recent open period. The GL Date you enter must be in an Open or Future period. 1.5 If you are using manual sequence numbering, open the More tabbed region, then enter a unique Document Number. Otherwise, Receivables assigns a document number when you save. 2.1 Enter the customer Billto Name and Location for this transaction. 3.1 Enter the payment Terms for this transaction. Receivables calculates the Due Date based on the payment terms and date of this transaction. If you enter a split payment term, the due date is the date that the first payment is due. Receivables uses the following hierarchy to determine the default payment terms, stopping when one is found:
customer billto site level customer address level customer level Transaction Type
3.2 Enter a Salesperson (optional). If the system option Require Salespersons is Yes and you did not assign a salesperson to this customer at the customer or site level, you must enter a salesperson. 3.3 Select the invoicing rule 4.1 To enter the goods or services to bill to this customer, choose Line Items, then enter the Item, Quantity, and Unit Price for each item. Receivables automatically calculates the total Amount for each line. 4.2 To enter Freight information for this transaction, choose Freight. 4.3 To review or update tax information for this line, choose Tax. Receivables displays a default Tax Code (or tax group) if you defined one at one of the following levels:
item, customer, customer site (and system level, if your tax method is VAT). You can override this value if the profile option Tax: Allow Override of Tax Code is set to Yes. Note: If you override a tax code, Receivables preserves the override across all updates to the invoice. Similarly, changing the shipto address or the line item could change the default tax code.
Freight and TAX Transaction Window Fields Completing Transactions Miscellaneous invoice More on Transactions Entering Invoices with Installments
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Freight and TAX

Entering Freight Information You can assign freight charges to an invoice or to each invoice line. When you assign freight to an invoice, Receivables includes the freight amount in the total amount of the invoice. To assign freight to each invoice line, choose Freight from the Lines window after entering your invoice lines. You cannot enter or update freight information if the invoices transaction type has Allow Freight set to No or if the line type is either Tax or Charges. By default, Receivables does not calculate tax on freight charges. However, you can calculate sales tax on freight by using inventory items to define freight services and entering these items as ordinary invoice lines.
Carrier: The company you use to send product shipments to your customers. FOB (free on board): The point or location where the ownership title of goods is transferred from the seller to the buyer. Receivables uses the Shipto FOB and then the Billto FOB as the default value when you enter transactions. Shipping Reference: Any related freight information you want to provide. Receivables does not validate this field. Entering Tax Information
Receivables lets you enter and review tax information for your transaction lines in the Tax window. If the profile option Tax: Allow Manual Tax Lines is No, you can only review the tax lines Receivables automatically creates; you cannot manually enter or delete tax lines in this case. Additionally, you cannot assign a tax code that must use inclusive tax to a manually entered tax line. If Allow Override is set to Yes for an inclusive tax code, you can assign it to a manually entered tax line, but you cannot use it as an inclusive tax code. For each invoice line, you can assign multiple tax codes and calculate compound taxes. Receivables automatically recalculates your compounded tax amounts whenever you save your changes or move to another tax line. You cannot review tax information for a line if the standard line type is either Freight or Charges or if the transaction is a chargeback.
Transaction Window Fields

Remitto Address: The remitto address for this transaction. The remitto address is the address to which customers send payments. The default is the remitto address assigned to the country, state, and postal code for this customer address, but you can change it.
Sold To Customer: The customer to whom you sold the goods and services. This customer could be different from your shipto or billto customer. The default is the billto customer for this transaction, but you can change it. Paying Customer Region Use the fields in this region to indicate that this transaction will be paid by automatic receipt. Account Number: The bank account number. If the profile option AR: Mask Bank Account Numbers is set to Yes, some bank account numbers appear as asterisks (*).
Paying Customer: The customer associated with the customer bank account assigned to your invoice. This could be different from the billing customer if, for example, you wanted a primary customer to pay for related invoices. Payment Method: The payment method assigned to this transaction. You can choose any payment method defined for this customer or a primary customer to which it is related, as long as the invoice date is within the payment method active date range and the payment method has bank accounts in the currency of the invoice or at least one of its bank accounts has the Receipts MultiCurrency flag set to Yes. Enter a payment method to automatically receive payment for this invoice with a direct debit or bill of exchange. Receivables uses the following hierarchy to default a value for this field:
the primary Payment Method of the parent site the primary Payment Method of the primary customer the primary Payment Method of the billto site the primary Payment Method of the billto customer
Tax Exemptions Region
Certificate: If you enter Exempt in the Tax Handling field, enter a tax exemption Certificate Number. Use the list of values to select an existing tax exemption certificate number. Reason: If you enter Exempt in the Tax Handling field, enter a Reason for creating this exemption, or select from the list of values. You can define additional exemption reasons in the Receivables Lookups window.
Tax Handling: You can enter a value for this field only if the profile option Tax: Allow Override of
Customer Exemptions is Yes and the transaction is not a chargeback. Use the default value of Standard if you want tax to be calculated as per the normal procedures set up in Receivables. Enter Exempt if your system option Use Customer Exemptions is set to Yes and you want to force tax exemption on the invoice lines. Enter Require to force tax calculation on the invoice lines. If you update this field, there will be no affect on existing invoice lines; only new invoice lines will get the new value as a default.
Invoice Date: Receivables prints the invoice date on your invoice. Receivables calculates the due date from the invoice date and payment terms you assign to this invoice. The default value is the batch date if you entered a batch, or the current date if you did not enter batch information. If you change the invoice date, Receivables automatically recalculates the due date and the associated tax. Finance Charges: Use this field to indicate whether finance charges are calculated against this invoice, debit memo, or chargeback. If you leave this field blank or choose If Appropriate, Receivables calculates finance charges according to your customers credit profile. If you choose No, Receivables does not calculate finance charges on this transaction, regardless of the customers credit profile. Default Tax: You can enter a value for this field only if the profile option Tax: Allow Override of Customer Exemptions is Yes and the transaction is not a chargeback. Use the default value of Standard if you want tax to be calculated as per the normal procedures set up in Receivables. Enter Exempt to force tax exemption on the invoice lines, and your system option Use Customer Exemptions is set to Yes. Enter Require to force tax calculation on the invoice lines. If you update this field, there will be no affect on existing invoice lines; only new invoice lines will get the new value as a default. Dispute Amount: The current amount of this invoice, debit memo, or chargeback that is in dispute. Receivables sums up the dispute amounts for each installment of your payment schedule and displays the total in this field. You can either increase or decrease the dispute amount. If you enter 0 (zero), the debit item is no longer in dispute. If your debit item does not have split terms, then you can enter a dispute amount that is between zero and the balance due for this item. You can also place a debit item in dispute in the Customer Calls window, and review your in dispute debit items in the Disputed Invoice Report. For debit items with split terms, you can enter the dispute amount for each installment in the Installments window or you can set it to either the balance due or zero in this field.
Original Transaction: When you query a chargeback in the Transactions window, this field shows the transaction for which the chargeback was created. Agreement: If entering an invoice, this is the order agreement this invoice is against. You can only enter this field if you have defined an agreement with the selected customer or customers related to the selected customer. You can associate an agreement with your customer in the Sales Orders window in Oracle Order Management. If you are entering a commitment, this is the agreement to associate with this commitment. You can only use agreements defined in Oracle Order Management. Cross Reference: The transaction to relate to this invoice. This field is optional. You can choose any transactions that are assigned to your billto customer or a selected customer. If you enter a cross reference transaction number and then change your billto customer, Receivables will erase the value in this field. Status: (Transactions window) The status of this transaction. This is a user maintainable field and you can define values for it in the Receivables Lookups window. Possible values include Open, Pending, Closed, or Void. This field is not used by Receivables, therefore it is not updated automatically when an invoice is paid off, closed, etc. You have to manually update this field. Warehouse (More Tab) If you entered an inventory item, enter a Warehouse Name to indicate the shipfrom location for this item (optional). If AutoAccounting is based on Standard Lines, you can use the inventory item and warehouse name to create accounting flexfield information. For example, you use multiple inventory organizations and set up AutoAccounting to create the Revenue account based on standard lines. AutoAccounting uses the item and warehouse that you enter here to create the Product segment of your Revenue account. Consolidated Bill Number The consolidated billing invoice number on which this transaction appeared. You can view all transactions that appeared on a specific consolidated billing invoice by entering a consolidated bill number and performing a query on this field. This field appears only if the profile option AR: Show Billing Number is setto Yes. Reviewing Accounting Information
Receivables uses AutoAccounting to create the revenue accounts for your invoice after you enter your invoice lines. You can review or update the revenue account assignments for your invoice in the Accounting window. If you are reviewing an invoice that uses rules, you must run the Revenue Recognition Program before you can view accounting information in this window. You can change the Accounting Flexfield for each account, but you cannot create or delete lines in the Accounting window. If you change a row that has already been posted, Receivables does not alter the posted entry; instead, it makes the adjustments through additional entries.Accounting Rule: The accounting rule for this invoice line. Accounting rules: are used to recognize revenue over multiple general ledger periods. If you entered an invoicing rule at the invoice headerlevel, you must enter a value in this field. If you did not enter an invoicing rule, Receivables skips this field. If you have selected a standard memo line or an item with an accounting rule for this invoice line, Receivables defaults this field to that accounting rule. Amount: The specific amount of the invoice line to assign to this revenue account. GL Date: The date that this account will post to your general ledger. The default is the general ledger date you entered for this invoice. You cannot change this date. If you are using invoicing rules, Receivables does not display the general ledger date until you run the Revenue Recognition Program. Percent (%): The percentage of this invoice line to assign to this revenue account.Entering Freight Information
Completing Transactions
Before you can complete a transaction in Receivables, you must ensure that all required information for that transaction type has been entered.
After you enter all required information, you can change a transactions status to Complete in the Transaction or the Transactions Summary window. When you complete an invoice, Receivables creates payment schedules based on the payment terms and invoice date you specified and includes the invoice in the standard aging and collection process if the transaction type has Open Receivables set to Yes. Attention: If you change the transaction type of a completed invoice to a type in which Open Receivable is set to No, Receivables no longer includes this invoice in the standard aging and collection process. If you update a completed invoice by changing values on which AutoAccounting depends (for example, salesperson), and AutoAccounting fails, Receivables displays a warning message and changes the status of the invoice to Incomplete. This is also true if you modify values that Receivables uses to calculate tax (for example, shipto address). Use the Complete button in the Transactions or Transaction Summary window to complete transactions. Use the omplete check box when the form is in Query mode to indicate the status of transactions you want to view.
Miscellaneous invoice
Enter a miscellaneous invoice:
Enter the invoice header Enter an invoice line with free-format description
Solution: 1. Login as Operations with Welcome as the password. 2. Choose Receivables, Vision Operations (USA) as the responsibility. 3. (N) Transactions > Transactions 4. Choose Manual as the source. Since this source has been defined as a manually entered transaction with automatically generated, sequential transaction numbering (the system will assign a number upon committing/saving). 5. Choose Invoice as the class. 6. Choose Invoice as the type. Your implementation team may have created a transaction type of Miscellaneous Invoice to segregate miscellaneous invoices from standard invoices. 7. Choose American Telephone and Telegraph as the customer. 8. New York (OPS) is defaulted as the location. 9. Smith, Lisa is defaulted as the contact. 10. 11. 12. Douglas, Ms. Lisa is defaulted as the salesperson Save your work. Click on the Line Items button.
13. 14. 15. 16. 17. 18. 19. 20.
Enter Scrap Material Sale in the Description field. Enter 1 as the Quantity. Enter $800 as the price. Choose Location as the tax code. Save your work. Close the Lines window to return to the Transactions window. Choose the Complete button to complete your invoice. Write down the invoice number
More on Transactions
Copying Invoices The Copy Transactions window lets you automatically create invoices for goods or services that you regularly provide to your customers. For example, you need to bill your customers for services or products provided once a month for two years, but do not want to manually create a new invoice every month. By creating invoice copies, you can quickly create a group of invoices that share the same characteristics. All of the dates for the copied invoices (for example, invoice date, GL date, and due dates) are determined using the copy rule that you specify. When you copy invoices, Receivables does not derive the exchange rates and tax rates from the copied invoice date. Instead, it derives the exchange rate and tax rate from the date of your first copied invoice. Consequently, if you are copying invoices in a foreign currency, or have tax rates that change over time, you may need to manually update the exchange rate and tax rate. You can use the Transactions window to update the tax rates for your copied invoices. Attention: If the invoice you are copying has lines that use inclusive tax codes and a tax rate has changed, the line amounts for your copied invoice(s) will also be different from the original transaction. This is because the line amount for a line assigned to a tax inclusive tax code includes tax. If the tax rate for any of the original invoices lines has changed, the line, tax, revenue, and sales credit amounts for the copied invoice(s) will be different from the original transaction. Receivables uses the invoice amount from your model invoice on your copied invoices. Therefore, even if the model invoice has been credited, adjusted, or paid, the amount for all copied invoices is equal to the original invoice amount.
You can copy invoices as often as you want and create copies from any existing invoice, even if it is closed. You create, review, and update copied invoices in the Transaction window. Voiding Transactions Receivables lets you make a debit memo, credit memo, onaccount credit, invoice, or chargeback invalid by updating the transaction type. You can only void a transaction if both of the following are true:
it does not have any activity against it it has not been posted to your general ledger
Maintaining Transactions You can review and update invoice, debit memo, deposit, guarantee, credit memo, onaccount credit memo, and chargeback information for transactions you enter manually or import into Receivables using AutoInvoice. If the Allow Change to Printed Transactions system option is Yes, you can update most transaction information, even if it has been printed. However, once there is activity against it, Receivables does not let you update most transaction attributes. Activity includes actions such as payments, credit memos, adjustments, and including the transaction on a consolidated billing invoice. You can update debit item information such as the due date, PO number, salesperson, and remitto address. You can also place a debit item in dispute by specifying a dispute amount, exclude a debit item from finance charges, or update the billto information. Receivables also lets you enter or update the exchange rate of your debit item if your debit item does not have any activity against it. You can also record other information by adding notes about your debit items in the Notes tabbed region of the Transaction window. Printing Transactions The Print Invoices window lets you generate invoices, debit memos, commitments, chargebacks, credit memos, and adjustments to send to your customers. You can preview the transactions that will print by selecting the Invoice Print Preview program. Note: You can also use Consolidated Billing to create a single document that summarizes all of a customers activity for a specific period. The system option Allow Change to Printed Transactions determines whether you can update a transaction after it has been printed. However, you cannot update a transaction if it has activity against it, regardless of how you set this option. Examples of activity include payments, credit memos, adjustments, and including the transaction on a consolidated billing invoice.
The Print Date field in the Transactions window shows you the last time a transaction was printed.
Entering Invoices with Installments

You can let your customers make invoice payments in multiple installments by using a split payment term. When you assign a split payment term to an invoice, Receivables automatically creates the payment schedules based on the invoice date and the payment terms that you define. For example, your split payment term might specify that 40 percent of the invoice is due in 30 days after the invoice date with the remainder due in 60 days. You define your split payment term in the Payment Terms window. You can enter due dates for each installment and specify discounts to assign to each line of your payment terms. You can also apply the tax and freight for the invoice to the first installment or prorate tax and freight over all of the installments. Receivables lets you review invoice installments if the status of the invoice is Complete. You can review invoice installments in the Installments window. You can update the transaction due date in the Installments window if the profile option AR: Update Due Date is set to Yes. To enter an invoice with split payment terms:
1. Navigate to the Transactions window. 2. Enter general information for this invoice. 3. Enter a split payment term in the Payment Term field, or select a payment term from the list of values. 4. Save your work. If you are ready to complete this invoice.
Crediting Transactions
Receivables lets you fully or partially credit your invoices while it automatically creates all the accounting reversal entries for you. You can use the Credit Transactions window or AutoInvoice to create your credit memos. The accounting is always the same whether the credit memo is imported through AutoInvoice or entered manually using the Credit Transactions window. Use the Credit Transactions window to enter, update, and review credit memos against specific invoices, debit memos, or commitments. You create credit memos to reduce the balance due for a transaction. When you credit a transaction, Receivables creates the appropriate accounting entries and reverses any sales credit assigned to your salespeople.
1. Receivables lets you credit an entire invoice or specific invoice lines. You can also credit freight for an entire invoice or only for specific invoice lines. You can delete an incomplete credit memo if the system option Allow Invoice Deletion is set to Yes. 2. A transaction must be complete before you can create a credit memo against it. 3. If you are crediting a transaction that uses invoicing and accounting rules, choose one of the following Rules Methods: Last In First Out (LIFO): Choose this option to back out revenue starting with the last general ledger period and reverse all prior periods until it has used up the credit memo. Prorate: Choose this option to credit an equal percentage to all account assignments for this invoice. Unit: Choose this option to reverse the revenue for the number of units you specify from an original line of the invoice. 4. If you are crediting a transaction that has multiple installments, choose one of the following Split Term Methods: First in First Out (FIFO): This method credits the first installment first. Last In First Out (LIFO): This method credits the last installment first.
Prorate: This method credits the installments of the credited transaction and prorates them based on the amount remaining for each installment. Crediting Transaction Lines In addition to crediting either part or the entire balance due of a transaction, Receivables lets you credit individual transaction lines. For example, if a transaction has several line items, you can partially or fully credit the amount due for each line or only a single line item.
Reviewing Accounting Information Receivables lets you enter or review the account assignments for a credit memo or tax line in the Accounting window. Receivables uses AutoAccounting to create the default values for the revenue and tax accounts of your credit memo lines.
If this transaction is a credit memo against a specific invoice or commitment, and the profile option AR: Use Invoice Accounting For Credit Memo is set to Yes, Receivables does not use AutoAccounting to create the default values for these accounts. Instead, reversal entries are created using the accounts of the invoice or commitment that you are crediting. Unapplying Cash when Crediting a Transaction Receivables lets you unapply cash that was previously applied to a transaction and create a credit memo for that amount. For example, your customer returns a product for which they have already paid in full. You need to unapply the cash for that transaction, then create a credit memo for the full amount.
To unapply cash and create a credit memo: 1. Navigate to the Receipts window. 2. Query the receipt to unapply, then choose Applications. 3. Uncheck the Apply check box next to the transaction. 4. Save your work. 5. Navigate to the Credit Transactions window. 6. Query the transaction from step 3. 7. Create a credit memo for the full amount.
Credit Memo Request Workflow Entering and Changing Credit Memos
Credit Memo Request Workflow

The Credit Memo Request Workflow process is a predefined workflow process that routes a credit memo request for approval using an organizations internal management hierarchy or approval limits defined in Oracle Receivables. If the request is approved, a credit memo is automatically created in Receivables. Otherwise, the process notifies the requestor with an explanation of why it was not approved.
You initiate the Credit Memo Request workflow from iReceivables. iReceivables is a web based, selfservice application that enables registered users to access their Receivables account information using a standard web browser. When an iReceivables user chooses the Dispute a Bill function, Receivables places the specified amount in dispute and initiates the Credit Memo Request process to route the request for approval.
To obtain approvals for a request, the Credit Memo Request process contacts the appropriate personnel via email or by posting notifications in the Workflow Notification Viewer window. If the disputed amount is greater than the approvers predefined limit, the process forwards the request to the next approver in the hierarchy. The process uses limits that you define in the Receivables Approval Limits window for each person within the hierarchy.
If the request receives the required approval, Receivables creates a new credit memo. If the request is rejected, the process notifies the requestor and removes the amount from dispute. You can use the predefined approval process that Receivables provides or customize the process to meet your business needs.
Entering and Changing Credit Memos

In this practice you will learn how to create credit memos. * Enter a credit memo with percentage * Enter a credit memo for a specific line * Enter an on-account credit invoice Assumptions * You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.
* The URL s for accessing the HTML login page and apps login page. * Seeded vision data. Tasks 1. Enter a credit memo with percentage:
It has been determined that the invoice entered should have included a 5% discount up front; that will be rebilled at a later date. You will create a credit memo for the discrepancy.
Solution: 1. Login as Operations with Welcome as the password. 2. Choose Receivables, Vision Operations (USA) as the responsibility. 3. (N) Transactions > Credit Transactions 4. You enter a query to retrieve previously created transactions. 5. Leave the Batch field set at None since we are not batching credit transactions. 6. The Source is Manual and the system will auto-generate the credit memo number. 7. Choose Credit and Rebill as the reason. 8. Enter Credit Memo as the type. 9. In the Line field of the Credit Memo region, enter 5 which implies a credit of 5 % for all lines. 10. Save your work. 11. Choose the Credit Lines button to review how the system pre-rated the credit amount.. 12. Close the Lines window to return to the Credit Transactions window. 13. Choose the Complete button to complete your invoice. 14. Write down the credit memo number _____________________________
Tasks 2. Enter a credit memo for a specific line: * Correct a specific invoice line error. Solution: 1. Login as Operations with Welcome as the password. 2. Choose Receivables, Vision Operations (USA) as the responsibility. 3. (N) Transactions > Credit Transactions 4. You enter a query to retrieve previously created transactions. 5. Leave the Batch field set at None since we are not batching credit transactions. 6. The Source is Manual and the system will auto-generate the credit memo number. 7. Choose Credit Memo as the type. 8. Choose Damaged Goods as the reason. 9. Save your work. 10. Choose the Credit Lines button. 11. Use List of Values to choose the value of the Num field. 12. Enter 5 as the quantity. 13. Enter 50 as the unit price. 14. Save your work. Notice Balance Due on the invoice.
15. Close the Lines window to return to the Credit Transactions window. 16. Choose the Complete button to complete your invoice. 17. Write down the credit memo number _______________________
Tasks 3. Enter an on-account credit invoice: A customer has been over-charged. Apply the on-account credit memo against the standard invoice. Solution: 1. Login as Operations with Welcome as the password. 2. Choose Receivables, Vision Operations (USA) as the responsibility. 3. (N) Transactions > Transactions 4. Choose Manual as the source. Since this source has been defined as a manually entered transaction with automatically generated, sequential transaction numbering (the system will assign a number upon committing/saving). 5. Choose Credit Memo as the class. 6. Choose On-Account Credit as the type. 7. Choose American Telephone and Telegraph as the customer. 8. New York (OPS) is defaulted as the location. 9. Smith, Lisa is defaulted as the contact. 10. Douglas, Ms. Lisa is defaulted as the salesperson. 11. Save your work. 12. Click on the Line Items button. 13. Enter Miscellaneous in the Description field. 14. Enter 1 as the Quantity. 15. Enter -400 as the unit price. 16. Choose Location as the tax code. 17. Save your work. 18. Close the Lines window to return to the Transactions window. 19. Choose the Complete button to complete your invoice. 20. Write down the invoice number _____________________. 21. (N) Transactions > Transactions Summary 22. You enter a query to retrieve previously created on-account credit transactions. 23. Choose the Applications button. 24. In the Apply To field, chose a transaction to apply the on-account credit against,
optionally you can choose not to apply the complete amount by changing the Amount Applied field. 25. Save your work. Home Account Receivables Transactions
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Entering Commitments
Receivables lets you create two types of commitments: Deposits: Create a deposit to record a customers prepayment for goods or services that you will provide in the future. Guarantees: Create a guarantee to record a contractual agreement with your customer to conduct business over a specified period of time.
Remaining Balances Deposit Deposit balances refer to the amount due remaining on the deposit. Receipts and credits reduce the deposit balance. Commitment Commitment balances refer to the contractual amount that has not yet been invoiced. Invoices against commitments reduce the commitment balance. Invoice Invoice balances refer to the amount due remaining on the invoice. Deposits, receipts, and credits reduce the invoice balance Creating customer Commitments
Use the Transaction window to enter or update your customer commitments. Receivables lets you update certain information depending on the commitment status. You define a commitment and then specify the debit and credit accounts. When your customers invoice or credit against their commitments, Receivables automatically adjusts the commitment balance and generates reversing accounting entries. You can assign sales revenue and nonrevenue credit as a percentage of the commitment total. If you do assign sales revenue credit, Receivables ensures that you assign 100% of your commitment total. To assign additional or bonus credit for certain sales, use nonrevenue sales credits.
Note: Commitments do not include tax or freight charges.
Enter the payment Terms if this commitment is a deposit. Receivables calculates the Due Date based on the payment terms and date of this deposit. The default is the payment term assigned to the transaction type you entered for this deposit. Receivables uses the following hierarchy to determine the default payment terms, stopping when one is found:
customer Billto site level customer address level customer level
Transaction Type
You cannot enter payment terms if the commitment is a guarantee
Completing the Deposit Process Completing the Guarantee Process
Home Account Receivables Transactions Entering Commitments
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Completing the Deposit Process

1. Customer agrees to pay deposit of 100 When the deposit is initially entered, the following accounting entry is created: Dr. Receivables (Deposit) 100 Cr. Unearned revenue 100
2. Goods of 40 is sold to customer and thus an invoice of 40 is created and applied to deposit of 100. These accounting entries are created: Dr. Receivables (Invoice) 40 Cr. Revenue 40 Dr. Unearned Revenue 40 Cr. Receivables (Invoice) 40 Net effect is: Dr. Receivables (Deposit) 100 Cr. Unearned Revenue 60 Cr. Revenue 40
3. Customer sends Payment of 100 against the deposit This accounting entry is created: Dr. Cash 100 Cr. Receivables (Deposit) 100 Net effect is: Dr. Cash 100 Cr. Unearned Revenue 60 Cr. Revenue 40
Completing the Guarantee Process

1. Customer commits to guarantee When the guarantee is initially entered, the following accounting entry is created: Unbilled Receivables 100 Dr. Unearned Revenue 100 Cr. 2. Invoice of 40 applied to guarantee These accounting entries are created: Receivables (Invoice) 40 Dr. Revenue 40 Cr. Unearned Revenue 40 Dr. Unbilled Receivables 40 Cr. Net effect is: Unbilled Receivables 60 Dr. Unearned Revenue 60 Cr. Receivables (Invoice) 40 Dr. Revenue 40 Cr. 3. Payment of 40 received for invoice These accounting entries are created:
Cash 40 Dr. Receivables (Invoice) 40 Cr. Net effect is: Cash 40 Dr. Revenue 40 Cr. Unbilled Receivables 60 Dr. Unearned Revenue 60 Cr.
Creating OnAccount Credits

Onaccount credits are credits you assign to your customers account that are not related to a specific invoice. For example, if your customer remits payment of $100 for a $90 invoice, you can create an onaccount credit for ten dollars. You can then apply this onaccount credit to another transaction.
You can specify the debit item to credit in the Transactions window or create an onaccount credit by not specifying one. You can apply and reapply onaccount credits to invoices, debit items, and chargebacks.
You can also place amounts onaccount when manually applying receipts in the Applications window. For this the auto-cash rules set (it defaults from customer bill-to, customer and system options) should have remaining remittance as on-account instaed of unapplied.
To place an amount on account, enter On Account in the Transaction Number field. The default amount is the unapplied amount of the receipt, but you can change it. Receivables marks any portion of this receipt that you do not apply or place onaccount as Unapplied. Applying OnAccount Credits Receivables lets you apply onaccount credits to your customers open debit items. For example, your customer has $200 onaccount. You can apply the onaccount credit to one or more open debit items to either reduce or close the onaccount credit and your customers outstanding balance.
In the above transaction, an on account credit (CM#500611) of amount - 80,220 is applied against the invoice 500591
To apply an onaccount credit to a transaction 1. Navigate to the Transactions Summary window.Query the onaccount credit to apply & Choose Applications. 2. Select the transaction to which you want to apply this onaccount credit from the list of values. Receivables enters the Amount Applied and updates the Unapplied Amount of the onaccount credit and the Balance Due for this transaction. The default Amount Applied is the balance due for this transaction, unless the balance due is greater than the amount of this onaccount credit. In this case, the default Amount Applied is the unapplied amount of the onaccount credit. You can accept this amount or enter a different amount (for example, if you want to apply this onaccount credit to more than one transaction). Note: Receivables uses the transaction type of the debit item to which you are applying credit to validate the application amount. If the transaction type forces natural application only, you must enter an application amount which brings the debit items balance closer to zero. If the transaction type does not allow overapplication, you cannot enter an amount that would reverse the sign of the balance of the debit item. 3. To apply this onaccount credit to another transaction, repeat step 2.
4. When you are satisfied with the application of this onaccount credit, save your work. Receivables updates your customers account balances.
About Adjustments
Receivables lets you make either positive or negative adjustments to your invoices, debit memos, chargebacks, onaccount credits, deposits, and guarantees. Adjustment Approval You can approve adjustments that are within your approval limits and give pending statuses to adjustments that are outside your approval limits. You can automatically write off debit items that meet your selection criteria. A pending adjustment must be approved before it affects the remaining balance of a transaction. You control adjustment approvals by creating individual approval limits. You define adjustment approval limits in the Approval Limits window by specifying a minimum and maximum approval amount for each user and currency. You can overapply an adjustment if the transaction type of the item you are adjusting has Allow Overapplication set to Yes. Use the Adjustments or the Approve Adjustments window to review and approve your pending adjustments.
Adjustment Activities You use receivables activities to default accounting information for your miscellaneous receipt, finance charge, and adjustment transactions. You can define as many receivables activities as you need. Define adjustment activities in the Receivables Activities window. Adjustment Status An adjustment has a status that indicates whether it is complete. Receivables provides the following adjustment statuses: Approved: This adjustment has been approved. Receivables updates the debit or credit item amount and status to reflect the adjustment. Pending Approval: The adjustment amount is outside the approval limits of the user who entered the adjustment. Adjustments with this status can only be approved by a user with the appropriate user approval limits. Rejected: You have rejected this adjustment. Adjustments with this status do not update the balance of the credit or debit item.
Research Required: This adjustment is on hold because you are either researching the debit or credit item, or are requesting additional information about the adjustment. You can define other adjustment statuses by updating the Receivables lookup Approval Type Adjustment Types You can create an adjustment at the invoice header level or adjust only specific elements of an invoice, debit memo, credit memo, or chargeback. For example, you can adjust individual invoice lines, or the tax, freight, and finance charges associated with a transaction. To do this, specify an adjustment type of Line, Tax, Freight, Charges, or Invoice when creating your adjustment. Validation When you create an adjustment, Receivables verifies that it is within your adjustment approval limits before approving the adjustment. If you enter an adjustment that is within your assigned approval limit for the currency of that item, Receivables updates your customers balance to reflect the adjustment. If you enter an adjustment that is outside your approval limits, Receivables creates a pending adjustment with a status of Pending Approval. If the transaction type does not allow overapplication, you cannot enter an amount that would reverse the sign of the balance of the debit item. If you specify Invoice Adjustments as your type of adjustment, Receivables requires that your adjustment amount be the exact amount to close the item you are adjusting, and enters this amount in the Amount field. Adjustment Numbering Receivables automatically generates and assigns a unique adjustment number when you create adjustments.
Approving Adjustments Creating Automatic Adjustments Entering Manual Adjustments
Approving Adjustments
When you create an adjustment that is outside of your approval limits, Receivables creates a pending adjustment with a status of Pending Approval. Pending adjustments must be approved before Receivables will update the balance of the transaction. Note: An adjustment that is pending approval does not reserve the transaction from updates by other types of activity, such as cash or credit memo applications.
You can approve a pending adjustment only if the adjustment amount is within your approval limits. However, you can review adjustment histories, record your comments, and create all other actions (such as assign a status of More Research or Rejected), even if the adjustment is outside your approval limits.You can approve an adjustment that has been selected and approved for automatic receipt generation only if the user profile option AR: Invoices with Unconfirmed Receipts is set to Adjustment or Adjustment and Credit.
When you approve an adjustment that is within your approval limits, Receivables automatically updates the balance of the transaction.
To approve a pending adjustment
1. Navigate to the Approve Adjustments window. 2. To limit your display to only certain adjustments, enter selection criteria. For example, enter a Creator, Adjustment Number, Currency, range of Amounts, or adjustment Status. Open the More tabbed region to enter selection criteria for a specific transaction, customer, or adjustment. Leave a field blank if you do not want to limit your query to adjustments matching that criteria. You can control how Receivables displays your adjustments by choosing the Order By Amount or Status option.
3. Choose Find. Note: You can view the detail accounting lines for an adjustment in the form of a balanced accounting entry (i.e., debits equal credits) by choosing View Accounting from the Tools menu. You can also choose to view the detail accounting as taccounts.
4. To approve an adjustment, enter a Status of Approved. To review information about this adjustment, including the date this adjustment was created, who created this adjustment, and any related comments, choose Action History.
Creating Automatic Adjustments

Run AutoAdjustment to automatically adjust the remaining balances of all open invoices, debit memos, credit memos, and chargebacks. You can adjust specific transactions by entering selection criteria such as remaining amount, due date, transaction type, customer name, or customer number.
When you run AutoAdjustment, Receivables automatically creates your pending or approved adjustments based on your approval limits, and prints preview and audit reports for your AutoAdjustment processes. If you enter a Remaining Amount range that exceeds your adjustment approval limits, Receivables displays a warning message and your approval limits when you submit. If you choose to continue, Receivables creates adjustments with a status of Pending Approval. If the Remaining Amount range you specify is within your adjustment approval limits, Receivables automatically approves your adjustment.
Entering Manual Adjustments

Use the Adjustments window to create your adjustments. When you assign an activity to your adjustment, Receivables automatically uses the accounts assigned to that activity for the adjustment. A transaction must have a status of Complete before you can adjust it.
1. Navigate to the Transactions Summary window.Query the transaction to adjust and then Select the transaction, then choose Adjust.
If this transaction has multiple installments, select the installment to adjust, then choose Adjust.
2. Enter the adjustment. Enter an Activity Name . 3. Choose the Type of adjustment you are creating. Valid adjustment types include Invoice, Line, Charges, Freight, and Tax.
4. Enter the Amount of this adjustment. If you specify Invoice as your adjustment type, Receivables requires that the amount of your adjustment be at least enough to close the item you are adjusting, and displays this value in the Amount field. If the amount of this adjustment is outside your approval limits, Receivables sets the status of the adjustment to Pending Approval when you save (unapproved adjustments do not update the balance due for an item). Attention: You can enter an amount greater than the balance due only if the transaction types Allow Overapplication option is set to Yes.
5. Enter the GL Date for this adjustment (optional). The default is the later of either the transaction GL date or the current date. However, if this date is not in an open period, the default GL Date is the last date of the most recent open period. The GL date must be later than be in an open or future enterable period.
6. Enter the Adjustment Date (optional). The default is the current date, but you can change it. 7. Open the Account IDs tabbed region, then enter the GL Account for this adjustment (optional). The activity name provides the default GL account, but you can change it.
8. If you are using manual document numbering, enter a unique Document Number for this adjustment. If you are using automatic document numbering, Receivables assigns a document number when you save.
9. If you entered an adjustment type of Line in step 6, enter the line number you are adjusting optional). Receivables does not update the remaining amount due for the line when you specify a line adjustment; instead, Receivables updates the balance due for the transaction by the amount that you entered for the line adjustment.
10. Open the Comments tabbed region, then enter a Reason for creating this adjustment (optional). Receivables prints your reasons on the Adjustment Register.
11. Update the Status of this adjustment (optional). If this adjustment is within your user approval limits, you can choose any status. If you are reviewing a previously approved adjustment, Receivables skips this field.
12. Save your work. Receivables generates a unique number for this adjustment.
Auto Invoice
AutoInvoice is a powerful, flexible tool you can use to import and validate transaction data from other financial systems and create invoices, debit memos, credit memos, and onaccount credits in Oracle Receivables. You use a custom feeder program to transfers transaction data from an external system into the AutoInvoice interface tables. AutoInvoice then selects data from the interface tables and creates transaction in Receivables. Receivables rejects transactions with invalid information to ensure the integrity of your data. You can run AutoInvoice together with Customer Interface or separately.
Oracle Receivables can create invoices from the following Oracle applications: Oracle Order Management, Oracle Projects, Oracle Service, Oracle Property Manager. Oracle Receivables can create invoices from the following non-Oracle applications: Legacy system (for transaction history), Non-Oracle billing applications, Non-Oracle order entry applications. What occurs during auto-invoice
1. Populates the RA_Interface_Lines, RA_Interface_distribution and RA_Interface_salescredit tables. 2. Lines are grouped and ordered by the grouping rule and line ordering line.Grouping rules are mandatory and determine how transaction lines are grouped into transactions. Optionally, you can use line-ordering rules to determine the order in which lines are displayed on a transaction. 3. Tax, freight, commitments and credit memos are linked to transaction line by transaction line, transaction reference and transaction link-to descriptive flex fields.To uniquely identify imported transactions and link the tax, freight, commitments and credit memos, define the Transaction flexfields 4. GL date is determined. 5. GL accounting code combinations are assigned using auto accounting rule. 6. TAX is determined. 7. All transactions are batched. 8. Validated lines are used to create the transaction.
Grouping Related Transactions
Grouping and ordering rules must include required attributes and may include optional attributes. Required attribute examples Bill-To Address Currency GL Date Primary salesperson Optional attribute examples Accounting rule Sales Order Tax Code
line ordering rules
AutoInvoice uses line ordering rules to order and number the lines grouped into transactions. For example, you might want to use line ordering rules to ensure that the highest invoice line amounts are listed first.
If an ordering rule is not defined, lines will appear on transactions in random order. You can specify a line ordering rule for each grouping rule.
Seting up autoinvoice Define the following:
Transaction flexfields Transaction Batch Source AutoInvoice system options AutoInvoice Line Ordering rules AutoInvoice Grouping rules
AutoInvoice Interface Tables Transaction Flexfields How does the GL date get derived Importing Data From Your Feeder System
AutoInvoice Interface Tables

Oracle Receivables uses three interface tables for AutoInvoice: 1. RA_INTERFACE_LINES 2. RA_INTERFACE_DISTRIBUTIONS 3. RA_INTERFACE_SALESCREDITS AutoInvoice transfers transaction data from the above three interface tables into the following Receivables tables:
RA_BATCHES_ALL RA_CUSTOMER_TRX _ALL RA_CUSTOMER_TRX_LINES _ALL RA_CUST_TRX_LINE_GL_DIST_ALL RA_CUST_TRX_LINE_SALESREPS_ALL AR_PAYMENT_SCHEDULES_ALL AR_RECEIVABLE_APPLICATIONS_ALL AR_ADJUSTMENTS_ALL
RA_INTERFACE_LINES
This table contains information relating to all transactions to be processed by AutoInvoice. Transactions include invoices, debit memos, credit memos, and on-account credits. Each record contains line, tax, freight, or finance charges information. The Line_Type field identifies the type of information contained in the record. A record can be a parent record: Line, Header Freight, or Charges; or a child record: Tax or linelevel Freight. A child record is linked to the parent record using the Link-To Transaction flexfield.
RA_INTERFACE_DISTRIBUTIONS
This table contains accounting distributions to be used by the transactions defined in RA_INTERFACE_LINES. Accounts defined in this table override any accounts created using AutoAccounting. You can choose to pass some or all account information to AutoInvoice. Any accounts that are not passed will be derived using AutoAccounting. Records in this table are linked to records in the RA_INTERFACE_LINES table using the Transaction flexfield. Not required if AutoAccounting determines GL distributions.
RA_INTERFACE_SALESCREDITS
This table contains all sales credit information for the transactions in the RA_INTERFACE_LINES table. The two tables are linked using the Transaction flexfield. Not required if not tracking sales credit.
Transaction flexfields
Transaction flexfields are descriptive flexfields that AutoInvoice uses to uniquely identify transaction lines. Because they are unique for each transaction line, they can also be used to reference and link to other lines. Receivables lets you determine how you want to build your transaction flexfield structure and what information you want to capture. Define a flexfield for each import source. Specify which one to use during import.
Types of transaction flexfields 1. Invoice Header (optional): Specifies invoice header information 2. Line (required): Uniquely identifies invoice lines 3. Link-To (optional): Link tax and freight to invoice lines 4. Reference (optional): Links credit memos to transactions
Transaction Flexfields
Transaction flexfields are descriptive flexfields that AutoInvoice uses to identify transactions and transaction lines. Receivables lets you determine how you want to build your transaction flexfield structure and what information you want to capture. There are four types of transaction flexfields: 1. Line Transaction Flexfield 2. Reference Transaction Flexfield 3. LinkTo Transaction Flexfield 4. Invoice Transaction Flexfield You must define the Line Transaction Flexfield if you use AutoInvoice. You can use the Line Transaction Flexfield to reference and link to other lines because the Line Transaction Flexfield is unique for each transaction line. AutoInvoice always uses the Line Transaction Flexfield structure for both the Linkto and Reference information when importing invoices. You must explicitly define the Linkto, Reference, and Invoice Transaction Flexfield structures only if this information is to be displayed on a custom window. Receivables gives you the option of displaying Invoice Transaction Flexfield information in the reference column of invoice lists of values. Use the System Profile Option AR: Transaction Flexfield QuickPick Attribute to select the Invoice Transaction Flexfield segment that you want to display. For example, if you want to be able to reference the order number for imported invoices when using an invoice list of values, you must assign the transaction flexfield
segment that holds the order number to the AR: Transaction Flexfield QuickPick Attribute profile option. The order number will now display in the reference column of invoice lists of values. Line Transaction Flexfield Use columns INTERFACE_LINE_ATTRIBUTE115 and INTERFACE_LINE_CONTEXT to define the Line Transaction Flexfield. Line Transaction Flexfields are unique for each record in the interface table and therefore can be used as record identifiers. Reference Transaction Flexfield Reference Transaction Flexfields have the same structure as the Line Transaction Flexfields. Reference Transaction Flexfields are used to apply a credit memo to an invoice or associate an invoice to a specific commitment. For example, to refer a credit memo to a specific invoice, use the REFERENCE_LINE_ATTRIBUTE115 and REFERENCE_LINE_CONTEXT columns of the credit memo to enter the Line Transaction Flexfield of the invoice. To refer an invoice to a specific commitment, use the REFERENCE_LINE_ATTRIBUTE115 and REFERENCE_LINE_CONTEXT columns of the invoice to enter the Line Transaction Flexfield of the commitment. LinkTo Transaction Flexfield LinkTo Transaction Flexfields also have the same structure as the Line Transaction Flexfield. Use LinkTo Transaction Flexfields to link transaction lines together in the interface table. For example, you might want to import tax and freight charges that are associated with specific transaction lines. If you want to associate a specific tax line with a specific transaction line, use the LINK_TO_LINE_ATTRIBUTE115 and LINK_TO_LINE_CONTEXT columns of the tax line to enter the Line Transaction Flexfield of the invoice. Invoice Transaction Flexfields Create a new flexfield with a similar structure as the Line Transaction Flexfield, but only include header level segments. For example, if the Line Transaction Flexfield structure has four segments and the last two segments contain line level information, define your Invoice Transaction Flexfield using the first two segments only. Segments included in the Invoice Transaction Flexfield should be included in the AutoInvoice grouping rules. Transaction Flexfields: An example This example illustrates how records described in the Line Transaction Flexfield are linked in the interface table using the LinkTo or the Reference Transaction Flexfield columns. Consider an invoice against a commitment with four records: two Line records, one header Freight record, and one Tax record. The transaction type for records of an invoice is INV.
The table below shows how the four invoice records are represented in the interface table. There are two segments enabled for the Line Transaction Flexfield OM (Order Management) context. The
How does the GL date get derived

For invoices without Rules: AutoInvoice first uses the GL date in the interface table (RA_INTERFACE_LINES_ALL), if one exists. If one does not exist then it is derived as follows: If the Derive Date box is checked for your batch source (Menu: Setup>Transactions>Sources, query your batch source, alternate region Accounting), AutoInvoice first uses the ship date in the interface table. If the ship date does not exist, AutoInvoice uses the sales order date. If the sales order date
does not exist, AutoInvoice uses the date entered in the Submit Request window when AutoInvoice was run.
If the Derive Date box is not checked for your batch source, AutoInvoice uses the date entered in the Submit Request window when AutoInvoice was run. For Invoices with Rules: AutoInvoice first uses the GL date in the interface table (RA_INTERFACE_LINES_ALL), if one exists.
If the Invoicing Rule is 'Bill In Advance', AutoInvoice uses the Rule Start Date for the GL date.
If the Invoicing Rule is 'Bill in Arrears' and the invoice line has an accounting rule of type 'Accounting, Fixed Duration' and a period of 'Specific Date', AutoInvoice computes an end date using the earliest accounting rule date.

For all other Accounting rules, AutoInvoice computes an ending date for each invoice line, and then takes the earliest date of these lines and uses it as the GL date of the invoice.
If your invoice does not use a fixed rule accounting duration and the rule start date is not provided in the interface table, GL date is derived as follows: If the Derive Date box is checked in batch source options, AutoInvoice first uses the ship date. If the ship date does not exist, AutoInvoice uses the sales order date. If the sales order date does not exist, AutoInvoice uses the date entered in the Submit Request window. If the Derive Date box is not checked, AutoInvoice uses the date entered in the Submit Request window.
Importing Data From Your Feeder System

Your onsite MIS personnel or Oracle consultant must first write a custom feeder program that transfers transaction data from your original system into Receivables AutoInvoice Interface tables. Your feeder program must convert data from your original system into a standard data format that AutoInvoice can read. AutoInvoice can then convert your imported data into Receivables invoices, credit memos, onaccount credits, and debit memos. Writing a Feeder Program The type of environment from which you want to transfer your data determines the type of feeder program you need to write. For example, you can use SQL*Loader, SQL*Report, PL/SQL, or Pro*C to write a feeder program to transfer transaction data from a nonOracle system. Or, you can write a conversion program to transfer historical data from your previous accounting system. Selecting an Import Utility SQL*Loader and SQL*Report are powerful and easytouse tools that should be able to accommodate all of your import needs. However, depending on the complexity of your import program, you may also want to use Oracles Pro* language products such as Pro*C, Pro*Cobol, and Pro*Fortran to write the program.
AutoInvoice Validation AutoInvoice validates your data for compatibility with Receivables. It ensures that the columns in Receivables Interface tables reference the appropriate values and columns in Receivables. Existence For some columns, AutoInvoice ensures that the values are already defined in Receivables. However, AutoInvoice does not validate against any effectivity date or status. Batch Sources You do not have to pass values for all of the fields that are referenced in the Transaction Sources window. If you want AutoInvoice to ignore any of these values for a specific batch source, you can set
the field to None in the Transaction Sources window. You use transaction batch sources that have a type of Imported when importing transactions into Receivables. Uniqueness AutoInvoice ensures that the invoice number you supply is unique within a given batch source and the document number you supply is unique within the associated sequence type. AutoInvoice also ensures that the Transaction Flexfield you supply is unique. Precision Precision is the number of digits to the right of the decimal point that are used in regular currency transactions. AutoInvoice ensures that the amount and the accounted amount you supply have the correct precision for a given currency. Cross Validation AutoInvoice ensures that certain column values agree with each other. These values can be within an interface table or multiple interface tables. For example, if you specify in your batch source that you do not want to use accounting rules, AutoInvoice ignores any values you supply for invoicing rule, accounting rule, and accounting rule duration. However, if you do import transactions that use accounting rules, AutoInvoice requires that these transactions also include an invoicing rule. Validation for Lines With Rules Besides validating dates, AutoInvoice also validates and rejects lines if:
The accounting rule has overlapping periods All of the accounting periods do not exist for the duration of your accounting rule
Create Transactions with Invalid or Incorrect Data You can specify whether AutoInvoice will reject or partially create transactions that have an invalid line, invalid tax rate, or a GL date in a closed period. For example, you import an invoice with three invoice lines and one of the lines is invalid. If the value of the Invalid Line option for this batch source is set to Create Invoice, AutoInvoice will create the invoice with only the two valid lines. You can then use the Transaction window to add the line that was rejected. If Invalid Line is set to Reject Invoice, AutoInvoice will not import this transaction or any of its lines into the interface tables. Transactions that fail validation appear in the AutoInvoice Validation report. The values you enter in the AutoInvoice Processing Options tabbed region of the Transaction Sources window determine how AutoInvoice will process transactions with invalid data.
Invoices with Rules
Invoicing and accounting rules let you create invoices that span several accounting periods. Accounting rules determine the accounting period or periods in which the revenue distributions for an invoice line are recorded. Invoicing rules determine the accounting period in which the receivable amount is recorded. Read the basics @ http://www.oracleug.com/user-guide/order-management/setup-steps-vi-payme...
Deferred Accounting Rules When you use deferred accounting rules, the Revenue Recognition program creates a single distribution per line that posts to an unearned revenue GL account. You can use deferred accounting rules only for invoices that are assigned the Bill in Advance invoicing rule. If the invoicing rule on a transaction is Bill in Arrears, the Revenue Recognition program ignores the deferred flag. You can later earn the revenue using the Revenue Accounting feature. If you use a deferred accounting rule with a single accounting period, Receivables recognizes the revenue in the period that you specify with the Revenue Accounting wizard. If you use a deferred accounting rule with multiple accounting periods, Revenue Accounting creates the revenue recognition schedule based on the rule, and the start date is determined by the GL start date that you entered using the Revenue Accounting wizard. If you use a nondeferred accounting rule with multiple accounting periods, Revenue Accounting uses the schedule created by the Revenue Recognition program. If an accounting period is closed, Revenue Accounting posts that portion of revenue into the subsequent open accounting period. The tables below illustrate the difference between deferred and nondeferred rules.
Demo : Invoice Corrections

Practice - Invoice Corrections Overview In this practice you will learn how to perform invoice corrections. * Update unit price * Adjust freight * Write-off an invoice * Enter a debit memo Assumptions * You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. * The URL s for accessing the HTML login page and apps login page. * Seeded vision data. Tasks
1.
Update unit price:
The unit price was incorrectly entered. Solution: 1. Login as Operations with Welcome as the password. 2. Choose Receivables, Vision Operations (USA) as the responsibility. 3. (N) Transactions > Transactions 4. You enter a query to retrieve previously created transaction. 5. Choose the Incomplete button to incomplete the transaction. 6. Click on the Line Items button. 7. Replace the unit price with any number. 8. Save your work. 9. Close the Lines window to return to the Transactions window. 10. Choose the Complete button to complete your invoice. Tasks 2. Adjust freight: * Correct the freight amount incorrectly entered. Solution: 1. Login as Operations with Welcome as the password. 2. Choose Receivables, Vision Operations (USA) as the responsibility. 3. (N) Transactions > Transactions Summary. 4. You enter a query to retrieve previously created transaction. 5. Choose the Adjust button. You will see the Installments window executed, then the Adjustments window will display. 6. Choose Freight Error as the Activity Name. 7. Choose Freight as the type. 8. Create an adjustment to reflect the freight increase of $25; notice the balance due for freight increases. 9. Select the Comments tab. 10. Choose CHARGES as the reason. 11. Enter correct freight charge as the comments for making this adjustment. 12. Save your work. 13. Write down the Adjustment Number _____________. Tasks
3. Write-off a portion of the invoice: A customer has been over-charged. Solution: 1. Login as Operations with Welcome as the password. 2. Choose Receivables, Vision Operations (USA) as the responsibility. 3. (N) Transactions > Transactions Summary. 4. You enter a query to retrieve previously created transaction. 5. Choose the Adjust button. You will see the Installments window executed, then the Adjustments window will display. 6. Choose Write-Off as the Activity Name. 7. Choose Line as the type. 8. Create an adjustment amount of 500 to reflect a decrease; notice the balance due for invoice decreases. 9. Select the Comments tab to enter a comment for making this adjustment. 10. Choose REFUND as the reason. 11. Enter overcharge customer as the comments for making this adjustment. 12. Save your work. 13. Write down the Adjustment Number _____________. Tasks 4. Create a debit memo: * You have not billed the customer for freight charges. Solution: 1. Login as Operations with Welcome as the password. 2. Choose Receivables, Vision Operations (USA) as the responsibility. 3. (N) Transactions > Transactions. 4. Choose Manual as the source. Since this source has been defined as a manually entered transaction with automatically generated, sequential transaction numbering (the system will assign a number upon committing/saving). 5. Choose Debit Memo as the class. 6. Choose Debit Memo as the type. 7. Choose American Telephone and Telegraph as the customer. 8. New York (OPS) is defaulted as the location. 9. Smith, Lisa is defaulted as the contact. 10. Douglas, Ms. Lisa is defaulted as the salesperson.
11. Save your work. 12. Choose the Freight button 13. Choose United Parcel Services as the Carrier. 14. Enter today as the Ship Date. 15. Choose Destination as FOB. 16. Enter 400 as the amount. 17. Save your work. 18. Close the Freight window to return to the Transactions window. 19. Choose the Complete button to complete your invoice. 20. Write down the invoice number _____________________.
Consolidated Billing
Use the Consolidated Billing Invoice program to print a single, monthly bill that includes all of a customers transactions for the period. This lets you send one consolidated bill to a customer, instead of a separate invoice for each transaction. Attention: You cannot use the Consolidated Billing feature with the Imported Billing Number feature. Use the Imported Billing Number when you want to group invoices other than on a monthly basis. When you create a consolidated billing invoice, Receivables includes all invoices, credit memos, adjustments, receipts, and crosssite applications that are assigned to a customer billto site and have not been included on a previous consolidated billing invoice. Attention: If a transaction has been included on a consolidated billing invoice, you cannot update it, regardless of how you set the system option Allow Change to Printed Transactions. This is because Receivables considers inclusion on a consolidated billing invoice to be an activity and you cannot update a transaction once it has activity against it. (Other examples of activity include payments, credit memos, and adjustments.) Statements and consolidated billing invoices are similar, but they have different purposes. The table below lists the differences between a statement and a consolidated billing invoice.
A consolidated billing invoice includes:
All transactions that were created before the cutoff date that you specify and have not yet been included on a consolidated billing invoice
Note: When creating a consolidated billing invoice, you can specify a cutoff date and currency combination only once for a given customer.
A beginning balance An itemized list of new charges (invoices, credit memos, and adjustments) in either summary or detail format Separate reporting of consumption tax The total amount of any payments received since the previous consolidated billing invoice The total balance due for this customer or billto site
Attention: The Consolidated Billing Invoice program does not select transactions from related customers
Revenue Management
Using event-based revenue management, Receivables can automatically evaluate your invoices to determine whether to immediately recognize revenue, or temporarily defer revenue to an unearned revenue account. Revenue is subsequently recognized depending on certain events, such as customer acceptance or receipt of payment. Receivables makes these automatic revenue recognition or deferral decisions based on your organization's established revenue policy, and the existence of any revenue contingencies on the invoice line.
Revenue contingencies are terms and conditions in a sales contract or order that prevent revenue from being immediately recognized, based on strict revenue recognition requirements mandated by US GAAP and International Accounting Standards. Typical contingencies that can delay revenue recognition are fiscal funding clauses (for government contracts), cancellation clauses, customer acceptance clauses, customer creditworthiness, nonstandard payment terms, and nonstandard refund policies.
Recognizing Revenue Accounting Entries Deferred Accounting Rules
Recognizing Revenue
Please read the basic concepts of payment terms, Invocing with rules and accounting rules @ http://www.oracleug.com/node/9
Run the Revenue Recognition program to generate the revenue distribution records for your invoices and credit memos that use Invoicing and Accounting Rules. You assign accounting rules to recognize revenue over several accounting periods. The Revenue Recognition program will create distribution records for the invoices and credit memos that you create in Receivables and import using AutoInvoice.
The Revenue Recognition program uses the accounting distribution sets that you specify in the Transactions window or import into Receivables using AutoInvoice to determine the accounts of your newly created revenue distribution records.
There are two Revenue Recognition programs: Revenue Recognition and Revenue Recognition Master. The Revenue Recognition Master program is for parallel processing only and takes advantage of the Oracle scalability feature to reduce processing time by running on multiple processors, or workers. The Revenue Recognition Master program determines the maximum number of parallel processors needed for your transaction volume and uniformly distributes the processing over these workers. You can set a maximum number of processors for the Revenue Recognition Master program to use at runtime. This scheduling capability allows you
to take advantage of offpeak processing time. You choose the Revenue Recognition program that you want to use at runtime.
When you submit the program, Revenue Recognition selects all transactions that have invoicing and accounting rules and that have not yet been processed since you last submitted the program. The program creates the revenue distribution records for all accounting periods specified by the accounting rule on each transaction line. If a deferred accounting rule exists, then Revenue Recognition will create the distribution records for an unearned revenue account.
Revenue Recognition also creates the receivable, tax, freight, and AutoInvoice clearing account assignments which correspond to the GL date of each invoice included in your submission.
If you later decide that the GL distributions need to be reclassified, you can change the individual distribution on the transaction. Receivables will automatically create the reverse accounting entries. If the GL date for a transaction is in a period that has a status of either Closed or Close Pending, Revenue Recognition changes the revenue GL date to the first subsequent period that has a status of Open, Future, or Not Open. If the GL date for a transaction is in a period that has a status of Open, Future, or Not Open, Revenue Recognition creates the revenue in the accounting period specified by the accounting rule.
Accounting Entries

1. When an incoice is created with out using invoice rule(if invoicing rule is not entered at the invoice header then accounting rule cant be seleceted at line level). The accounting entries are generated after completing the transaction.
2. When invoicing rule is used the accouting entries are created by the revenue recognization program.
Deferred Accounting Rules

When you use deferred accounting rules, the Revenue Recognition program creates a single distribution per line that posts to an unearned revenue GL account. You can use deferred accounting rules only for invoices that are assigned the Bill in Advance invoicing rule. If the invoicing rule on a transaction is Bill in Arrears, the Revenue Recognition program ignores the deferred flag. You can later earn the revenue using the Revenue Accounting feature.
If you use a deferred accounting rule with a single accounting period, Receivables recognizes the revenue in the period that you specify with the Revenue Accounting wizard. If you use a deferred accounting rule with multiple accounting periods, Revenue Accounting creates the revenue recognition schedule based on the rule, and the start date is determined by the GL start date that you entered using the Revenue Accounting wizard.
If you use a nondeferred accounting rule with multiple accounting periods, Revenue Accounting uses the schedule created by the Revenue Recognition program. If an accounting period is closed, Revenue Accounting posts that portion of revenue into the subsequent open accounting period.
The tables below illustrate the difference between deferred and nondeferred rules. This table illustrates what happens when you have a $300 invoice with a 3 month deferred rule and an original start date of February 2. In this example, all periods are open.

Notice that Receivables ignores the original start date from the transaction and uses the GL date that you entered with the Revenue Accounting wizard, March 2. This table illustrates what happens when you have a $300 invoice with a 3 month non deferred rule. In this example, February is closed.
Receipts
A receipt is a written acknowledgement that a specified article or sum of money has been received as an exchange for goods or services. The receipt acts as the title to the property obtained in the exchange. In oracle receipts are processed in three steps: Creation(approval)/Confirmation, Remittance and Clearance.
Manual Receipts
Manual receipts are entered in receipt workbench and can be entered individually or in a batch. The customer balance is updated when the receipt is saved. Manual receipts can be cash or miscellaneous receipts.
QuickCash Receipts
You can enter receipts manually or using AutoLockbox. QuickCash receipts must be entered in a batch. The customer balance is updated when the batch is posted. You can simplify the receipt application process using AutoCash rule sets.
Automatic receipts
Automatic receipts can be a bill of exchange (BOE), direct debit, or credit card receipt and Automatic receipts must be entered in a batch. Automatic receipts are created, approved, and formatted. The customer balance is updated during the approval process. Automatic receipts require customer authorization and customer bank information, and they can require customer confirmation.
Receipt Type You can enter two types of receipts in Receivables:
1. Cash receipts: Payment (such as cash or a check) that you receive from your customers for
goods or services.
2. Miscellaneous receipts: Revenue earned from investments, interest, refunds, and stock sales.

You can apply receipts to invoices, debit memos, deposits, guarantees, onaccount credits, and chargebacks. You can partially or fully apply a receipt to a single debit item or to several debit items. You can enter receipts and apply them to transactions in either Open or Future accounting periods. If you do not specify a customer for a receipt, the receipt is unidentified. In this case, the receipt amount appears in the Unidentified field in the Receipts window (Application Summary tabbed region). You cannot apply an unidentified receipt. Receipt Status A receipt can have one of the following statuses: Approved: This receipt has been approved for automatic receipt creation. This status is only valid for automatic receipts. Confirmed: For manually entered receipts, this status indicates the receipt belongs to a receipt class that requires remittance. For automatic receipts, this status indicates the receipt has been confirmed. Remitted: This receipt has been remitted. This status is valid for both automatic and manually entered receipts. Cleared: The payment of this receipt was transferred to your bank account and the bank statement
has been reconciled within Receivables. This status is valid for both automatic and manually entered receipts. Reversed: This receipt has been reversed. You can reverse a receipt when your customer stops payment on a receipt, if a receipt comes from an account with nonsufficient funds or if you want to reenter and reapply it in Receivables. You can reverse cash receipts and miscellaneous receipts. 1.1 Receipts Batches 1.2 Cross Currency Receipts 1.3 More on Receipts (Standard Reversal and Debit memo reversal) 2.1 Applying Receipts 2.2 Chargebacks and Adjustments 2.3 Bills of Exchange Demo : Customer Receipts - Bank Deposits - Remittances
Entering a Manual receipt Applying Receipts QuickCash Receipts Automatic Receipts
Entering a Manual receipt

Manual receipts are entered in receipt workbench. Manual receipts can be entered individually or in a batch. Manual receipts can be cash or miscellaneous receipts. The customer balance is updated when the receipt is saved. Navigate to the Receipts or Receipts Summary window.
1. You can enter transactions in any currency defined in Oracle Receivables if you have at least one remittance bank account with a Receipts MultiCurrency flag set to Yes. If no such bank account exists, you are limited to entering only those currencies in which bank accounts exist. (The currency of a multiple currency bank account must be the same as your functional currency.) If the currency for this receipt is different from your functional currency and you have not defined daily conversion rates, enter exchange rate information. 2. Enter a payment method. Receivables uses the payment method to determine the accounting and remittance bank accounts for this receipt. You can only select payment methods that have remittance bank accounts that are in the same currency as the receipt. 3. To help identify the customer for this receipt, enter a transaction number (optional). Receivables displays the customer associated with this transaction. If multiple customers have transactions with the number you entered, Receivables displays a window from which you can select a customer. If you enter a number here, Receivables displays the customer number in the Applications window when you apply this receipt. If you did not enter a transaction number and the receipt is not unidentified, enter customer information for this receipt, including customer name or number and billto location. When you enter the customer, Receivables enters this customers primary billto location, if one exists (you can change
this value). If the system option Require Billing Location for Receipts is set to Yes, you must enter a billto location. 4. Receivables derives the default remittance bank account from the payment method you entered. You can accept this value or enter any bank account assigned to the payment method if the bank account is in the same currency as that of the receipt or the MultiCurrency flag for the remittance bank is set to Yes. Only bank accounts that are in your functional currency can accept multiple currency deposits.
Receipts Batches Cross Currency Receipts More on Receipts
Receipts Batches
Use the Receipt Batches window to create receipt batches or to query existing batches. Batching receipts lets you:
View the difference between your control and actual batch counts and amounts as you process your receipts. These differences can alert you to data entry errors, missing or lost receipts, or duplicate entries.
Group related receipts together to share default attributes such as receipt class, payment method, and automatic numbering. Manage the timeconsuming task of data entry. For example, you have many receipts to enter and want to divide the work among several people. You can create one batch and have each person entering receipts add them to the same batch.
You can add duplicate receipts to a batch. Duplicate receipts are receipts that have the same number, amount, and customer information. You can post a receipt batch to your general ledger regardless of its status. You can delete a receipt batch only if it does not contain any receipts. Receivables lets you add receipts denominated in different currencies to a batch. However, the total in the Receipt Batches window reflects amounts entered in all currencies, not the batch currency. For example, if there are two receipts in a batch, one for 400 USD and one for 200 EUR, the total amount for this batch is 600, regardless of the batch currency.
Batch Statuses A batch has a status that indicates whether it is complete. Receivables automatically updates the status of a receipt batch when you add new or apply existing receipts in the batch. A batch can have one of the following statuses: New: This is a new batch that does not yet contain any receipts. Out of Balance: The actual count and amount of receipts in this batch do not equal the control count and amount. Open: The actual count and amount equal your control count and amount. However, you have not applied, identified, or placed onaccount one or more receipts. Closed: The actual count and amount match the control count and amount. All of the receipts in this batch have been either applied or placed onaccount.
Cross Currency Receipts

When your customer remits payment for an invoice, debit memo, or chargeback, the receipt is usually in the same currency as the transaction. However, there may be times when your customer remits payment in a currency that is different than the currency of the open debit item. For these occasions,
Receivables lets you create cross currency receipt applications to let you fully or partially process the payment. For example, you create Invoice 101 in Canadian dollars (CAD) but your customer sends a receipt in Deutsche marks (DEM) as payment. Using the remittance information provided by your customer, you can either fully or partially apply this receipt to Invoice 101. Receivables automatically calculates the open balance on the invoice (if any) and the foreign exchange gain or loss (FXGL) for this application. You can apply receipts to transactions using any currency defined in Oracle General Ledger. Because of fluctuating exchange rates between currencies, cross currency applications must be evaluated to determine their effect within Receivables and the corresponding accounting entries created in your general ledger. With each cross currency application, you can incur either a foreign exchange gain or loss (FXGL).
When you apply a receipt to a transaction that is in a different currency, Receivables first determines the transaction and the receipt amounts in your functional currency. Receivables then compares these amounts to determine the foreign exchange gain or loss for this application. If the result is positive, you will incur a foreign currency exchange gain for this application; if the result is negative, you will incur a foreign exchange loss. Note: As with same currency receipt applications, Receivables accounts for your FXGL using the Realized Gains and Realized Losses accounts that you defined in the System Options window.
Viewing Discounts on a Cross Currency Receipt Application When you apply a receipt to multiple transactions that are in different currencies, Receivables does not display the total discount amount in the Receipts window (Application Summary tabbed region). This is because Receivables always calculates discounts in the currency of the transaction. Since there are multiple transactions with multiple currencies involved in this type of application, the total discount
cannot be expressed in a single currency. Therefore, you can only view the discount for each application separately in the Applications window. To do this, perform the following:
query the receipt in the Receipts window choose the Applications button scroll to display the Discounts field (if this field does not appear in the window, choose Show Field, then Discounts from the Folder menu)
Accounting Entries in Multiple Currencies When you enter a receipt or a transaction that is not in your functional currency, Receivables requires that you enter the applicable exchange rate in the Exchange Rates pop up window. This lets Receivables account for amounts in both your functional currency and the currency of the transaction. Customer Remittance Information When applying cross currency receipts, your customer needs to provide you with the following remittance information:
to which invoice(s) this receipt should be applied if the receipt is a partial payment, how much of each invoice is to be settled (this is the Amount Applied field in the Applications window) how much of the receipt should be allocated to this transaction (this is the Allocated Receipt Amount field in the Applications window)
Note: Alternatively, your customer can provide the exchange rate used to convert the transaction currency to the receipt currency (this could be a previously agreed upon rate). If your customer provides this exchange rate, Receivables automatically calculates the Allocated Receipt Amount. For information on how the cross currency rate field and the Allocated Receipt Amount are mutually exclusive.
More on Receipts
Entering Miscellaneous Receipts Noninvoice related transactions such as investment and interest income are known as miscellaneous receipts in Receivables. Use the Receipts or Receipts Summary window to enter your miscellaneous receipts. You can enter miscellaneous receipts in any currency defined in the system if you have at least one remittance bank account with the Receipts MultiCurrency flag set to Yes. If no such bank account
exists, you can only enter receipts in the same currency in which bank accounts exist. Receivables uses distribution sets that you define to account for miscellaneous receipts.
Reversing Receipts Receivables lets you reverse a receipt when your customer stops payment on a receipt or if a receipt comes from an account with nonsufficient funds. You can also reverse a receipt if you want to re enter and reapply it in Receivables. You can reverse both standard, invoicerelated receipts and non invoice related (miscellaneous) receipts. You can reverse an Automatic Receipt only if its status is Approved. After you reverse a receipt, you cannot update any of the receipts attributes.
Receivables lets you create two types of reversals: Standard Reversal: When you create this type of reversal, Receivables automatically creates reversal journal entries for your general ledger and reopens all of the debit and credit items that were closed with the original receipt. You can create a standard reversal for a transaction related to a chargeback if there is no activity against the chargeback and the chargeback has not been posted to the general ledger. If the chargeback has been posted to the general ledger, you must create a debit memo reversal (see below). If you create a standard reversal for a receipt that you have applied, Receivables reverses any adjustments or chargebacks that you created, as long as you have not posted these adjustments to your general ledger. Debit Memo Reversal: When you create this type of reversal, Receivables does not update any of the receipt activity associated with the original receipt. The new debit memo reversal is actually a new receivable that replaces the item closed by the original receipt. Receivables requires that you create a debit memo reversal if: you are reversing a receipt that you previously applied to a chargeback and this chargeback has had any activity against it (for example, another receipt, credit memo, or adjustment), or the chargeback or adjustment was posted to your general ledger When you create a debit memo for a receipt reversal, Receivables creates a line on your debit memo that displays the original receipt number associated with the debit memo. In addition, when you save your reversal, Receivables assigns a unique transaction number to your new debit memo.
Reapplying Receipts You can reapply receipts that you previously applied in error before or after posting these items to your general ledger. When you reapply a receipt, you first unapply the original receipt applications; this reopens each transaction that was previously closed by the receipt.
You can reapply both automatic and manually entered receipts. However, you cannot unapply a receipt that has adjustments associated with it unless you first readjust the transaction to its original amount. In addition, you cannot unapply a transaction if there is a chargeback against it and the chargeback has any activities against it (for example, another receipt or credit memo).
Applying Receipts
Use the Applications window to apply your receipts or onaccount credits.
You can apply all or part of a receipt or onaccount credit to a single debit item or to several debit items. For example, your customer may send a single check to pay all of one invoice and part of another invoice. Or, a customer may have an onaccount credit he will expect you to use with his receipt to close an open debit item.
You cannot apply an unidentified receipt; you must specify the customer who remitted the receipt before you can apply it to a transaction. You can apply a receipt to an unrelated customers debit items if the system option Allow Payment of Unrelated Invoices is set to Yes. You can apply receipts to any type of transaction except guarantees and standard credit memos. You can also combine onaccount credits with a customers receipts to increase the amount you can apply to debit items, leave partial receipt amounts unapplied, or place an amount on account. If you leave partial receipt amounts unapplied, you can write off the remaining receipt balances.
You can apply receipts in the same foreign currency as your transactions. Enter foreign currency exchange rate information using predefined exchange rates, or enter your own rate. When you post a foreign currency receipt application to the general ledger, Receivables records a realized gain or loss amount.
If you have set up Receivables to use cross currency receipts, you can apply a receipt in one currency to one or more transactions in different currencies. Receivables uses the transaction type of the debit item to which you are applying the receipt to validate the application amount. If the transaction type does not allow overapplication, you cannot enter an amount that would reverse the sign of the debit item. If the transaction type specifies Natural Application only, you must enter an amount that brings the balance due closer to zero.
Receivables uses the Application Rule Set assigned to this debit items transaction type to determine how to reduce the open line, tax, freight, and finance charge amounts. If there is no application rule set assigned to this items transaction type, Receivables uses the application rule set in the System Options window.
Account entries 1. If the receipt does not require remittance and clearance then the account entries would be
2. Account entries for receipt with remittanc and clearnce are Confirmed Receipt Dr. Unidentified Cr. Unidentified Dr. Unapplied Cr. Unapplied Dr. Receivables Cr Remitted /Cash Clearing Dr. Confirmed Receipt Cr. Cash Account Dr. Remitted /Cash Clearing
Chargebacks and Adjustments Bills of Exchange Demo : Customer Receipts - Bank Deposits - Remittances
Chargebacks and Adjustments

Receivables lets you create adjustments and chargebacks against transactions to which you are applying a receipt. You can create multiple chargebacks and adjustments against each transaction, for positive or negative amounts.
Receivables lets you enter a chargeback against a credit memo or an onaccount credit if they have a positive balance. Receivables uses the transaction type of the transaction you are adjusting to validate the adjustment or chargeback amount. If the transaction type does not allow overapplication, you cannot enter an amount that would reverse the sign of the balance of the debit item.
Chargebacks and adjustments do not follow the natural application rules; this lets you adjust transactions in either direction, regardless of the Natural Application flag. If the profile option AR: Cash Allow Actions is set to No, the Chargebacks and Adjustments buttons are not available in the Applications window.
Creating a Chargeback Use chargebacks to create a new debit item for your customer when closing an existing debit item. For example, your customer sends payment of $75 for a $100 invoice. You can apply the receipt to the invoice, then create a chargeback for the balance due.
Receivables requires that you automatically number your chargebacks. You can change the base number for your chargeback numbering sequences by updating the Last Invoice Number field for this chargeback batch source in the Transaction Sources window. Charge backs can be viewed in transacrtion window but needs to be created while applying receipts to transactions. the following error message 'll be shown if you try to create a chargeback in transaction form.
To create a chargeback: 1. Navigate to the Receipts window. Query or enter the receipt. Choose Applications.Select or enter the Transaction to which you want to apply this receipt and click on Chargebacks button. 2. Enter the transaction Type and the Amount of this chargeback. The default chargeback amount is the remaining amount of the transaction. Receivables displays the new remaining amount in the Balance Due field. You can enter an amount greater than the balance due only if the Allow Overapplication option for this transaction type is Yes. 3. If document numbering is enabled and the document sequence associated with this receipt is
Manual, enter a Document Number for this chargeback. If the sequence type is Automatic, Receivables assigns a document number when you save. 4. Enter the Account for this chargeback. The transaction type provides the default account, but you can change it. 5. Enter the Due Date for this chargeback. The default due date is the value of the Chargeback Due Date parameter in the System Options window. For example: Current Date, Deposit Date, Open Invoice Due Date, or Receipt Date. 6. Open the More tabbed region, then enter a Reason for creating this chargeback and any Comments (optional). Chargeback reasons can include Refund, Billing Error, or Write Off. You can define additional chargeback reasons in the Receivables Lookups window.
After completing chargeback we can verify the intial invoicve against which the chargeback is done and it should reflect the transaction in Adjustments header.
After the chargeback is created we can query it in transaction form.
Accounting entries for chargeback is same as that of invoice i.e Receivable Dr. Revenue Cr.
Creating an Adjustment Create adjustments to increase or decrease the balance due for an invoice, debit memo, chargeback, or commitment. For example, you apply a receipt to an invoice, but there is still an open balance of two dollars. You can create an adjustment to write off the remaining amount and close the debit item. Note: If you create an adjustment during a receipt application (for example, to write off a small remaining amount) and then unapply the application later, Receivables reverses the adjustment and assigns it a status of Adjustment Reversal.
Bills of Exchange
A bill of exchange (BOE) is an agreement between two parties in which one party promises to pay the other a specific amount for goods or services at a future date. The date on which payment is due is known as the maturity date. In Receivables, bills of exchange are similar to receipts: you can enter them either manually or automatically and apply, reverse, confirm, clear, and riskeliminate them.
1. Use the Automatic Receipts program to automatically create bills of exchange and apply them to specific transactions. Use the Receipts window to manually enter bills of exchange and then apply them to one or more open debit items in the Applications window. 2. You determine the required processing steps and numbering information for your bills of exchange by defining a bill of exchange receipt class. As with automatic receipts, bills of exchange generated by the Automatic Receipts program require confirmation only if you check the Require Confirmation check box when you define the receipt class in the Receipt Classes window. 3. The remittance method determines the accounting entries Receivables generates for your bills of exchange, regardless of the creation method.
To help you track and manage bills of exchange, Receivables enables you to:
clearly distinguish receipts from bills of exchange in Receivables windows view the total amount of risk created by bills of exchange and regular receipts view all bills of exchange or receipts at risk using variable selection criteria, such as customer name, maturity date, and remittance bank information view the total amount of receipts and bills of exchange at risk for a specific customer or for all customers
Demo : Customer Receipts - Bank Deposits Remittances

In this practice you will learn how to create remittances. * Enter a remittance batch Assumptions * You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.
* The URL s for accessing the HTML login page and apps login page. * Seeded vision data. Tasks 1. Enter a remittance:
You have received customer payments and ready to make a deposit to the bank. Solution: 1. Login as Operations with Welcome as the password. 2. Choose Receivables, Vision Operations (USA) as the responsibility. 3. (N) Receipts > Remittances 4. Select Batch Type of Remittance. 5. System will default in the current date 6. Select Standard as the remittance method. 7. Select the Receipt Class and Payment Method for customer related receipts. 8. Leave Media Reference Blank.
9. Select Bank of America as the bank. 10. Select New York as the branch. 11. Select 10271-17621-619 as the account number. 12. Enter any number in the deposit number. This represents the deposit slip number. 13. Save your work. 14. Choose the Manual Create button. 15. With Cursor in the Payment Method field of the receipts region, run a query for your receipt numbers. 16. Enter an x in the Select checkboxes to the left of your receipt numbers to select them to be included in this deposit or remittance to the bank. 17. Select Format to approve and format your batch. 18. The system will display a decision box asking if you would like to continue with the Approval and Format step, choose Yes. 19. The system will automatically save your changes. 20. Choose OK to acknowledge the save to the database.
QuickCash Receipts
Create a batch of QuickCash receipts when you need to enter and apply receipts quickly. The QuickCash window requires only minimal information for each receipt and application. QuickCash also provides an extra level of control for entering high volume receipts because it does not immediately affect your customers account balance. When you enter receipts and applications in a QuickCash batch or import them using AutoLockbox, Receivables stores the data in an interim table. You can then use the QuickCash window to review receipts and ensure that application information is correct. After reviewing a QuickCash batch for accuracy, run Post QuickCash to update your customers account balances. QuickCash lets you apply your receipts to one or many transactions, use AutoCash rules, place receipts onaccount, or enter them as unidentified or unapplied. If you enable the profile option AR: Enable Cross Currency, you can also apply receipts to transactions in different currencies. After you run Post QuickCash, Receivables treats QuickCash receipts like any other receipts; you can reverse and reapply them and apply any unapplied, unidentified, or onaccount amounts.
You must batch QuickCash receipts. Receivables does not update the status, applied, on account, unapplied, and unidentified fields for your QuickCash batch until you save your work. Application Types: Auto Cash Rule: Apply receipts to this customers transactions using AutoCash Rule Set defined for this customers profile class. If this customers profile class does not have an AutoCash rule Set assigned to it, Receivables uses the AutoCash Rule Set defined in the System Options window. Single: Apply this receipt to a single installment. If you choose this option, you must also enter the transaction number to which you want to apply this receipt. Multiple: Apply this receipt to multiple transactions or to multiple installments. You specify the transactions and installments to which you want to apply this receipt in the Applications window. OnAccount: Apply this receipt to a customers account, but not to a specific transaction. Unapplied: Mark this amount as Unapplied if this receipt is not applied to any transactions. Unidentified: Mark this amount as Unidentified if this receipt is not associated with a customer. To apply a QuickCash receipt to several transactions:
1. Navigate to the Receipt Batches window. 2. Query or enter the QuickCash batch. 3. Choose Receipts. 4. If this is a new batch, enter receipt information and choose an Application Type of Multiple. If the receipt currency is different than the batch currency, specify exchange rate information. 5. Choose the Multiple button. 6. Enter a transaction or select one from the list of values.
Post QuickCash Receivables Application Rule Sets
Post QuickCash
When you enter receipts in the QuickCash window or import them using AutoLockbox, Receivables stores them in interim tables. You can then use the QuickCash window to review each receipt and use the Applications window to ensure that the application information is correct. After you approve the receipts and their applications, run Post QuickCash to update your customers account balances. You can choose which QuickCash or Lockbox batches to review. For example, you may want to review only the receipts entered by your data entry clerks or the data files sent by your bank.
The following diagram summarizes how Post QuickCash transfers receipts and applications from interim tables into Receivables.

Closed Transactions If you enter a receipt and fully apply it to an open invoice, Post QuickCash will process the receipt as well as the application. However, if you apply a receipt to an invoice that is closed by another application, Post QuickCash will only process the receipt. In this case, the receipt will be marked Unapplied. You need to use the Applications window to manually apply these receipts.
AutoCash Rule Sets Post QuickCash uses the AutoCash Rule Set assigned to the customer site or profile class to determine how to apply receipts. If an AutoCash Rule Set has not been assigned to the customers site, Post QuickCash uses the rule set in the customers profile class; if the customers profile class does not have an AutoCash Rule Set, Post QuickCash uses the rule set in the System Options window.
If you use AutoCash rules to apply your receipt and all of the rules in your AutoCash Rule Set fail, Post QuickCash will apply the receipt using the Remaining Amount Rule Set that you
specify for this customers profile class. If you did not specify a Remaining Amount Rule Set for this customers profile class, Receivables marks the remaining amount Unapplied.
Bank Charges If you set the system option AR: Create Bank Charges to Yes, Receivables will also consider bank charges and a tolerance limit when applying receipts.
Receipts Without a Billto Location If the system option Require Billing Location For Receipt is set to Yes, Post QuickCash will not process receipts that do not have a billto location. Both the QuickCash window and AutoLockbox validate that receipts have a billing location if this option is set to Yes. However, the system option may change after the receipts have been entered but before Post QuickCash has been run, so Post QuickCash revalidates.
Application Rule Sets Post QuickCash uses the Application Rule Set assigned to the debit items transaction type to determine how to apply payments and how discounts affect the open balance for each type of associated charges. If no rule set is assigned to this items transaction type, Post quickCash uses the rule set defined in the System Options window.
Cross Currency Receipts If the profile option AR: Enable Cross Currency is set to Yes, you can use Post QuickCash to apply a receipt when the receipt and transaction currencies are different.
Receivables Application Rule Sets

Application Rule Sets determine the steps Receivables uses to apply partial payments to your customers open debit items and how discounts affect the open balance for each type of associated charges. Transactions usually consist of line items, tax, freight, and finance charges, or a combination of these. Depending on your business needs, you can reduce each associated charge proportionately, close the outstanding tax amount first, or apply a payment to the line and tax amounts and use any remaining portion to reduce the freight and finance charges. Application Rule Sets let you specify how Receivables reduces the balance of your open debit items when you:
Apply a receipt to an invoice or debit memo
Run Post QuickCash
You can assign a rule set to each of your transaction types and enter a default rule set in the System Options window. Receivables uses the following hierarchy to determine which application rule set to use, stopping when one is found: 1. Transaction Type
2. System Options
Note: Receivables Application Rule Sets always apply payments and discounts to the gross line amount (the net line amount plus any associated tax amount). For more information, see: Tax Inclusive in the Oracle Receivables Tax Manual.
Predefined Application Rule Sets Receivables provides the following predefined Application Rule Sets. You can view these rule sets and create your own rule sets in the Application Rule Sets window.
Line First Tax After This rule set first applies the payment to the open line amount, and then applies the remaining amount to the associated tax. If the payment is greater than the sum of the line and tax, Receivables attempts to close each open item by applying the remaining amount in the following order, stopping when the
payment has been fully applied: 1. Freight 2. Finance charges Any remaining receipt amount is applied using the Overapplication Rule. This is the default application rule set in the System Options window.
Line First Tax Prorate This rule set applies a proportionate amount of the payment to the open line and tax amount for each line. If the payment is greater than the sum of the open line and tax amounts, Receivables attempts to close each open item by applying the remaining amount in the following order, stopping when the payment has been fully applied: 1. Freight 2. Finance charges Any remaining receipt amount is applied using the Overapplication Rule. Prorate All This rule set applies a proportionate amount of the payment to each open amount associated with a debit item (for example, any line, tax, freight, and finance charge amounts for this item). Receivables uses the following formula to determine the applied amount:
Any remaining receipt amount is applied using the Overapplication Rule. Overapplication Rule Each application rule set includes an Overapplication Rule by default. This rule applies any remaining receipt amount after the balance due for all charges has been reduced to zero. If the transaction type for the debit item has the Allow Overapplication check box set to Yes, Receivables applies the remaining amount to the lines, making the balance due negative. If the items transaction type has Allow Overapplication set to No, you can either place the remaining amount on account or leave it Unapplied. When using AutoLockbox, Receivables uses your AutoCash Rule Set to determine how to apply the remaining amount. Transactions with Mixed Sign Balances An additional consideration is the situation in which you apply a payment to a transaction that has mixed sign balances. Mixed sign balances indicates that not all of the charges that make up a transaction have the same sign (positive or negative). In this case, the procedure Receivables uses to
apply a payment is different than when applying to transaction amounts that are all positive or all negative (i.e. same sign balance). When you apply a payment to a transaction that has mixed sign balances, Receivables applies the payment only to those amounts that have the same sign as the payment. For example, if the payment is for a positive amount (i.e. not a credit memo), Receivables only reduces the charges that have a positive balance; any negative balances are not affected. As with transactions having a same sign balance, Receivables will apply any remaining amounts according to the verapplication rule assigned to your Application Rule Set.
Notes: AutoCash rule sets decide which rules are applied to select the transactions to be applied for the receipt. Once that is done Application rule set decides how the open balances of the customer are applied i.e the sequence in which the line amount/tax/fright are deducted from open balance. Example : You create a receipt of $1000 for a customer which has 4 different invoices open. AutoCash rule ll decide the sequences of the invoice in which the payment ll be applied i.e INV1, INV3, INV4 and INV2. Now when INV1 is selected, the application rule setll decide which amount (Line, Tax or Freight) ll be applied first and next.
Automatic Receipts
Instead of manually entering receipts, you can use the Receivables automatic receipts feature to automatically generate receipts for customers with whom you have predefined agreements. These agreements let you collect payments on time by transferring funds from the customers bank account to yours on the receipt maturity date. You can also manage your cash flow by deciding when, where, and how much you should remit to your bank. Automatic receipts also lets you manage your customer risk and reconcile bank statements. You can decide how you wish to process the receipts from creation to remittance and risk elimination. The Automatic Receipts feature satisfies the many variations of bank remittance processing, such as Bills of Exchange, Direct Debits, Letras Aceptadas (Spain), Tratte Accettate (Italy), Lettre de Change Releve, and Credit Prelevement Automatique (France). Once created, automatic receipts can be reapplied in the same way as manual receipts. You can reverse an automatic receipt only if its status is Approved. Note: You cannot create cross currency receipt applications using Automatic Receipts. Creating automatic receipts involves three steps:
Create: Select the invoices to include in your automatic receipts. Approve: Update, delete, and approve the receipts that you have selected. Format: Format your automatic receipts onto paper to send to your customer for confirmation or notification before remitting them to your bank on either paper or magnetic media. This step is optional, as it depends upon the type of automatic receipt you create.
You can perform these steps at the same time or separately.The following diagram provides an overview of the Automatic Receipts and Remittance processes.
Auto lockbox
Auto lockbox
what is LockBox
Process where customers mail payments to a post office box near your remittance bank and the bank deposits the payments in your account at regular intervals
Bank provides you with computer files detailing about the receipts and their application Receivables uses AutoLockbox to import details about receipts directly into the system
Benifits of Auto LockBox
Eliminates manual data entry Streamlines the application of receipts to outstanding transactions Effectively manages cash flow by reducing turnover for converting checks into cash
Use of Auto LockBox
Apply receipts to outstanding invoices Import historical receipt data Autolockbox reports, such as the Post Quikcash Execution Report, are a good tool to reconcile autolockbox
Prerequisites for Auto LockBox
Set up agreements with banks Define lockboxes in Oracle Receivables Define AutoLockbox transmission formats Define receipt classes and payment methods Test AutoLockbox transmission with bank
Bills Receivable
A bill receivable is a document that your customer formally agrees to pay at some future date (the maturity date). The bill receivable document effectively replaces, for the related amount, the open debt exchanged for the bill. Bills receivable are often remitted for collection and used to secure short term funding. Oracle Receivables provides a comprehensive solution to managing the entire life cycle of bills receivable: creation, acceptance, remittance, updates, history, and closing. Creating Bills Receivable Oracle Receivables treats a bill receivable as a separate transaction. You can create bills receivable individually through the Bills Receivable window, directly exchange a completed invoice for a bill receivable in the Transactions workbench, or create bills receivable in batch using the Bills Receivable Transaction Batches window or the Bills Receivable Batch Creation concurrent program. You can create signed, unsigned, and customerissued (promissory note) bills receivable. Remitting Bills Receivable You can remit bills receivable to a bank or factoring company using the Remittances window. Choose to factor remittances with or without recourse. Optionally print bills receivable as supporting documentation for the bank or for your own records. Run the Bills Receivable Maturity and Risk program and report to apply receipts and eliminate risk on remitted bills factored with recourse. You can further automate the creation of a remittance batch by using the inbound API. Managing Bills Receivable Use the Bills Receivable Portfolio Management window as an analysis tool and to record changes to a bills receivable transaction. You can:
Record customer acceptance of a bill receivable Endorse a bill Manage risk associated with factored bills Mark a bill as unpaid or protested Cancel a bill Recall a bill from a remittance batch Exchange one bill for another Place or remove a bill on hold View bill details, including the current status
View the life cycle of events for each bill Utilize folder functionality to meet your analysis needs
You can also review bills receivable transactions using the Collection and Receipt workbench features. To further automate the update of items not paid by a customer, you can choose to utilize the Unpaid Bills Receivable API. Notes: Bills receivable is same like the debtor the only and the minor difference between is while selling the goods on the credit we open the debtor account and when the debtor give bills in regards of the payment of the credit goods purchased we open the bills receivable accounts and if the bill is not matured on the due-date or dishonoured we again transfer the bills receivable in the debtors account.
Bills Receivable Creation
Bills Receivable Creation

1. There are four methods in Oracle Receivables for exchanging transactions for bills receivable:
Manually, using the Bills Receivable window and the Assignments window. Directly, by exchanging a transaction in the Transactions window for a bill receivable. Automatically, by creating a bills receivable batch using the Bills Receivable Transaction Batches window. Automatically, by submitting the Bills Receivable Batch Creation concurrent program in the Submit Request window.
2. When you create a bill receivable manually, you can assign and group transactions that have the same currency and exchange rate as the bill according to your own requirements. When you create bills receivable automatically, you must assign transactions a bills receivable creation payment method. Receivables collects and groups transactions into bills receivable based on selection criteria, currency, exchange rate, paying customer bank account, and the rules defined on the bills receivable creation payment method. 3. The bills receivable transaction type assigned to the bill receivable determines if the bill is issued by the drawee (promissory note), requires drawee acceptance (signed bill), or does not require drawee acceptance (unsigned bill). The transaction type also determines the printing options for the bill.
Note: While a transaction is assigned to a bill receivable that is pending drawee acceptance, you cannot perform any activity on the transaction, such as applying receipts, credit memos, or adjustments. 4. Bills Receivable Accounting After you exchange a transaction for a bill receivable, the transaction is reduced by the exchanged amount. Accounting for the bill receivable occurs:
when the bill receivable is accepted by the drawee, or when a bill receivable that does not require acceptance is completed.
The initial accounting for a bill receivable is a debit to Bills Receivable and a credit to Accounts Receivable for each transaction exchanged. Receivables derives the Bills Receivable account segments from AutoAccounting and inherits the Accounts Receivable account segments from each transaction exchanged.
Manually Creating a Bill Receivable
Manually Creating a Bill Receivable

Use the Bills Receivable window to manually create a bill receivable and assign transactions to the bill. You can also query and update existing bills receivable in this window. You can designate a maximum amount for the bill. If you do, then the total amount of the transactions assigned to the bill must equal the designated maximum amount in order to complete the bill. If you do not designate a maximum amount, Receivables calculates the amount of the bill as the sum of assigned amounts when you complete the bill. The values for the Signed and Issued by Drawee boxes are derived from the bills receivable transaction and are displayed for reference only. Receivables updates the Acceptance Date and Acceptance GL Date when a bill that requires acceptance is accepted, and updates the Remittance Date and Remittance Batch when the bill is remitted. After you enter general information to create the bill, you can:
Enter drawee and remittance bank information. Assign transactions to the bill. Complete the bill. Accept a bill.
Pre-requisities
Define AutoAccounting. Define bills receivable transaction types. Define transaction batch source(s). Define customer drawees and drawee sites.. Define document sequences (optional). Create a customer with drawee site.
Manually Assigning Transactions to a Bill Receivable
Manually Assigning Transactions to a Bill Receivable

Use the Assignments window to manually assign transactions to a bill receivable, remove transactions from a bill receivable, and review assigned transactions. You can assign and unassign transactions to a bill until the bill is completed or, for bills that require acceptance, until the bill is accepted.
You can manually assign any class of transaction to a bill except guarantees. You can also assign a bill that has a status of Unpaid to a new bill receivable.
By default, you can only assign transactions that belong to the drawee and its related customers. If you set the Receivables system option Allow Payment of Unrelated Transactions to Yes, you can assign transactions of unrelated customers. You can assign full or partial transaction amounts to a bill. The unassigned portion of a transaction remains an open item. If you designated a maximum amount for the bill, you can only assign transactions up to the designated maximum amount. You cannot complete a bill receivable with a designated maximum amount until the bill is fully assigned.
Note: Bills receivable assignments follow the natural application rule, even though the individual transactions assigned to the bill may allow for overapplication. You can only assign transactions that have the same currency as the bill receivable. Transactions assigned to the bill must share the same functional exchange rate. The bill inherits the exchange rate from the transactions assigned to it when you complete the bill. If you want to assign transactions with a different currency, you must uncheck any transactions already assigned to the bill and enter the new currency in the Currency field.
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Collections
Collections helps you to review and better service your customer accounts using the Oracle Receivables collections workbench. You can use this workbench to review internal collections policies, which customer accounts have outstanding balances, and discover developing business trends. This chapter also tells you how to create dunning letters, calculate finance charges, and print statements using Oracle Receivables.
Customer Accounts Account Overview Account Details Credit Holds Customer Correspondence Customer Calls Viewing Account Balances by Aging Bucket
Customer Accounts
Receivables lets you view customer account information in a variety of ways. You can view the total amount overdue for a customer or customers in the Account Summary window. You can view all transactions that are past due for a specific customer in the Account Details window.
The Customer Accounts window displays a customers credit limit and available credit if you set Display Currency to Yes in the Find Customer Accounts window. Receivables displays a customers current account balances in your functional currency using the most recent exchange rate.
Suggestion: To automatically display receipts at risk and include them when calculating a customers past due balance, set the profile option AR: Include Receipts at Risk in Customer Balance to Yes. If this profile option is set to No, you can include receipts at risk by choosing Include Receipts at Risk in Customer Balance from the Tools menu and then reexecuting your query.
Account Status: A user defined code to indicate a customers current account status. You can define additional account status values in the Receivables Lookups window.
Average Days Late: The average number of days late for receipts by customer and currency. Receivables calculates this value using the following formula: Average Days Late = Sum (Days Late) / Total Number of Receipts
DSO: Days Sales Outstanding. Receivables calculates this amount using the following formula: DSO = (Total Outstanding Receivables / Total Sales Amount for Prior DSO Days) * DSO Days
You specify a default value for your days sales outstanding calculation (DSO Days) in the System Options window.
Past Due Transactions: The number of past due transactions for this customer. Receipts At Risk: The amount of receipts for this customer that have not yet cleared the bank and factored receipts that have not been risk eliminated.
Risk Code: A user defined code to indicate this customers credit risk. You can define additional risk code values in the Receivables Lookups window.
Account Overview
Receivables lets you view the total number and amount of transactions entered, accrued finance charges, and discounts for a customer during a specific period of time. For example, if you specify March 1992, Receivables displays the total number and amount of transactions, on time and late payments, and discounts earned during that period.
Suggestion: To automatically display receipts at risk and include them when calculating a customers past due balance, set the profile option AR: Include Receipts at Risk in Customer Balance to Yes. If this profile option is set to No, you can include receipts at risk by choosing Include Receipts at Risk in Customer Balance from the Tools menu and then reexecuting your query.
Account Details
Receivables lets you view detailed or summary information about your invoices, credit memos, debit memos, and commitments that have outstanding balances. Use the Account Details window to view the status, due date, number of days late, dispute amount, and the balance due for a specific transaction. You can open this window from the Navigator or by choosing Account Details from the Customer Accounts or Aging window. When you select the Account Details button from the Aging window, the Account Details window may show transactions that are not included in the total displayed on the Aging window. The Aging window displays items based on GL Date, while the Account Details window does not. You can view more detailed information about a transaction by choosing the Details button. If the transaction you are viewing uses the Staged Dunning method, you can also modify its dunning level in this window. You may want to do this, for example, if your customer has remitted payment for a past due item, and you want to reduce the severity of the next dunning letter they will receive. You can update a past due debit items dunning level at any time. To display the dunning level for a debit item, choose Show Field from the Folder menu, then choose Current Dunning Level. To modify this items dunning level, enter a new dunning level. You can change a dunning level to 0 (zero) or any positive number. Note: The Account Details window does not display receipts, credit memos, onaccount credits, adjustments, and debit items that have a transaction type with Open Receivables set to No. Transactions assigned to a transaction type with Open Receivables set to No do not update your customer balances and therefore are not included in the standard aging and collection process.
To view the total amount due by transaction type and time period for a specific customer, choose the Account Overview button. For example, you can view the total number and amount of invoices entered for Customer ABC from August to December, 1998. You can open the Account Overview window from the Navigator or by choosing Account Overview from the Customer Accounts window. To view information for a specific transaction, such as customer billto and shipto addresses, payment terms, due date, status and invoice lines, choose the Transaction Overview button. To view the dunning history for a specific transaction, choose the Dunning History button. You can update the due date for a transaction in this window if the profile option AR: Update Due Date is set to Yes. Account Details Field Reference This section provides a brief description of some of the fields in the Account Details window. Balance Due: The balance of the transaction. If this item is an invoice, debit memo, deposit, guarantee, or chargeback, the remaining amount is the amount due. If this item is a receipt or onaccount credit, the remaining amount is the amount not yet applied to debit items. Class: The transaction class of an the transaction or receipt. Classes include invoices, receipts, credit memos, chargebacks, guarantees, deposits, and debit memos. Dispute Amount: The amount of the transaction that is in dispute or has pending adjustments against it.
Viewing Transaction Balances
Viewing Transaction Balances

Receivables lets you view complete information for a specific transaction in the Balances window. The Balances window displays the original transaction amount, the total amount of receipts, credit memos, adjustments, and finance charges applied to this transaction and any discounts taken.
The Balances window also indicates at what level a receipt, credit, or discount was applied to this transaction and the type of adjustments that were created. For example, you may have created two types of adjustments for a single transaction; one of type Charges and another of type Freight. Similarly, more than one credit memo may have been applied; one at the Line level and one at the Tax level.
Receivables displays the total amount of each action affecting this transaction in the Total column and displays how the line, tax, freight, and finance charges balances were affected in the Balance row. By default, the Balances window displays transaction balances in the currency in which they were entered, but you can view amounts in your functional currency (if
different from the entered currency) by checking the Functional Currency box. If the transaction you are viewing is a guarantee or a deposit, Receivables displays the current balance in the Commitment Balance field.
Credit Holds
When a customer is consistently late in making payments, has exceeded their credit limit, or is identified as a bad risk, you can prevent additional credit purchases by placing their account on credit hold. When a customer account is on credit hold, you can still create new sales orders for that customer in Oracle Order Management. However, all new orders will have a status of on hold and you will not be able to book or ship them until the hold on the customer account is removed.
A credit hold does not prevent you from creating new transactions for a customer in Receivables. Note: You can place a credit hold at either the customer account or site level.
To place a customer account on credit hold:
1. Navigate to the Customer Accounts window. 2. Query the customer account. 3. Choose Credit Hold, then choose OK to acknowledge the message.
Customer Correspondence
Regular correspondence is an effective way to create and maintain good relationships with your customers. Receivables provides three ways to correspond with your customers: printing account statements, printing dunning letters, and making customer calls. Receivables lets you view all previous customer correspondence in the Correspondence window. You can view all previous contact with your customers, including dunning letters, customer calls, and account statements in this window.
Prerequisites
Assign profile classes to customers. Define dunning letters. Create dunning letter sets.
Customer Calls
When a customers account or payment for a specific transaction is past due, you can contact the customer by phone and use the Customer Calls window to record the results of your conversation. By speaking with a customer you may learn that they were incorrectly billed, never received the goods or services that were ordered, or have already sent payment for the invoice in question. By entering
details about your conversation, you create a record of the contact and can recommend any further collection action.
You can also use the Customer Calls window to place amounts in dispute and review previous calls made to your customers. You can define additional call actions and customer responses in the Receivables Lookups window. You can enter new actions or topics for an existing call, but you can only update the following information:
Call Status in the Customer Calls window Follow up Complete check box in the Customer Calls window (Response tabbed region) and the Call Topics window Complete check box in the Actions window
Note: If there are two Transaction Number fields, the profile option AR: Show Billing Number is set to Yes. This profile option determines whether you can enter both a consolidated billing invoice number and a transaction number. If two fields appear next to Transaction Number, enter a consolidated billing invoice number in the first field; enter a transaction number in the second field. Call Actions Enter call actions during a customer call to indicate any recommended followup steps for a collection
item. Receivables provides the following call actions: Alert: Notify management that this item is still outstanding. Call: Contact the customer for more information. Collection Action: This transaction requires further collection action. Collection Follow Up: This invoice, debit memo, or chargeback requires further follow up action. Credit Memo: Credit memo this transaction or line item. You can generate the Call Action report for this action and have your credit memo department enter the credit memos. Exclude from Dunning: This option removes your customer from dunning. Your customer remains off the dunning list until you reinclude the customer for dunning by updating their customer profile in the Customer Profile Classes window.
Note: If you attempt to exclude from dunning a customer site that does not have a profile class but another of this customers sites does have a profile class, Receivables displays the following message: No site level profile exists. Do you want to update the customer profile? If you choose Yes, Receivables changes the profile class at the customer level and the customer will be excluded from dunning. If you choose No, Receivables does not update the profile class. In this case, you can define a profile class for this site in the Customers window, which will exclude the site from future dunning submissions. Partial Dispute: Your customer disagrees with an open invoice, debit memo, or chargeback. For example, if your customer disagrees with an open debit item line amount, you can place that line in dispute for further research. You can create new dispute actions and update or delete existing dispute actions. To update an existing dispute amount for a debit item, query up the record and update the Amount field. To mark an amount as no longer in dispute, query your customers action, then either update the Amount to zero, or delete the record. Choose this option if you want this invoice to appear in the Disputed Invoice report.
Recording Call Actions Scheduler - Reviewing Collector Actions Topics : Placing an Item In Dispute
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Recording Call Actions

Use the Call Actions window to recommend followup activity after recording a customer call. You can place items in dispute, mark an item for further collection action, or update or delete existing disputes. You can define additional call actions in the Receivables Lookups window. Follow up actions that you enter against a customer or specific transaction appear in the Schedular window for your collectors toreview. Note: You can only create new rows in the Call Actions window; you cannot modify existing data.
Completing a Call Action You can indicate that a specific call action has been executed by marking it Complete in the Call
Actions window. Completing call actions lets you track items that require additional customer contact and record your progress. 1. Navigate to the Customer Calls window. 2. Query the call. 3. Choose Actions. 4. Check the Complete box next to the call action. 5. Save your work.
Scheduler - Reviewing Collector Actions

When you contact a customer to discuss an overdue account or payment for a specific transaction, you enter a specific call action in the Call Actions window. Call actions indicate whether an issue has been resolved or requires further followup activity. You can view items that require further collection activity in the Scheduler window. The Scheduler window lists the followup date, the recommended collection action, and the customer to contact. You can also view the Follow Up Action and Notes information that you entered in the Call Actions and Call Topics windows. To display a particular field, choose Show Field from the Folder menu, then select the field to display.
Topics : Placing an Item In Dispute
If your customer disagrees about the outstanding balance for an item, you can mark that item or a specific amount due as in dispute. Amounts that are in dispute appear in collections reports. Receivables does not prevent you from applying payments to disputed transactions. You can choose whether to calculate finance charges on disputed items when printing your statements. You can place items in dispute from the Customer Calls window, the Installments window, or by using iReceivables.
To place an item in dispute: 1. Navigate to the Customer Calls window. 2. Query or enter the customer call. 3. Choose Topics. 4. Select the transaction, then choose Actions. 5. Enter a dispute Action, then enter the Amount in dispute. 6. Save your work.
Viewing Items in Dispute Receivables lets you view disputed items in the Dispute window. The Dispute window displays the date an item was placed in dispute, the amount in dispute, and the person who placed the item in dispute. You can also review items in dispute by creating the Disputed Invoice Repor
Viewing Account Balances by Aging Bucket

Receivables lets you view your customers outstanding account balances by aging bucket. Aging buckets are time periods in which you age and can review your debit items. For example, you can define an aging bucket that includes all debit items that are 1 to 30 days past due. You can define your own aging buckets or customize the aging buckets that Receivables provides. When you view your customer balances by aging bucket, Receivables calculates and displays the total outstanding amount and the credits not aged for unapplied cash, onaccount cash, and onaccount credits. You can modify your display by specifying an aging bucket or by choosing to age or summarize open credits. Receivables selects a transaction for aging if its GL date is prior to or the same as the current date. Once selected for aging, Receivables uses the following formula to determine the number of days past due for each transaction: (Current Date) (Due Date) = Days Past Due Receivables then groups each transaction into an aging bucket based upon the number of days it is past due. For example, your customer has four invoices, Invoice 101 to 104, all of which are due within
30 days. For each invoice, this table shows the invoice number, the amount due, the important invoice dates, and the number of days past due:
If you choose to view this customers past due transactions using the Standard aging bucket, Receivables groups these invoices by the least number of days past due first, as illustrated in the table. Note: This is a simplified example. Activities such as receipt applications, adjustments, and credit memos will affect the open amount if the activity GL Date is prior to or the same as the current date. You can view open items as of a specific date by running one of the Receivables Aging reports.
Aging Window Field Reference Dispute Amount: The total amount of this customers open balance that is currently in dispute. OnAccount Cash: The total amount of onaccount cash for this customer. If you chose to Summarize Open Credits in the Find Aging window, Receivables displays your onaccount cash amount here.
OnAccount Credits: The total amount of open onaccount credits and credit memos for this customer. Onaccount credits and credit memos are open until you apply the entire amount to invoices, debit memos, or chargebacks. If you chose to Summarize Open Credits in the Find Aging window, Receivables displays your onaccount credit amount here. Outstanding Amount: The receivables balance due, adjusted for all credit items, for this customer. Receivables calculates the adjusted balance for your customer as the outstanding balance minus unapplied cash, onaccount cash, and onaccount credits. If you chose to Age Open Credits in the Find Aging window, the Adjusted Balance is the same as the Outstanding Balance because Receivables automatically includes your credits in the bucket amounts. Pending Adjustments: The amount of adjustments that are currently pending approval. Receipts At Risk: The amount of this customers receipts that have not yet cleared the bank and factored receipts that have not been risk eliminated. You must check the Include Receipts At Risk box in the Find Aging window to view this amount. Unapplied Cash: The total amount of unapplied cash for this customer. If you chose to Summarize Open Credits in the Find Aging window, Receivables displays your unapplied cash amount here.
Period Closing Process

Use standard reports to: 1. Reconcile transactions 2. Reconcile receipts 3. Reconcile Receipts to Bank Statement Activity for the Period 4. Reconcile journals
5. Reconcile customer balances 6. Reconciling the General Ledger Transfer Process Reconcile transactions
Generate the Transaction Register and the Sales Journal by Customer for the period under consideration. The Sales Journal balance should match the total of the transactions in the Transaction Register plus twice the Credit Memo totals.
Reconcile Receipts
Generate the Receipt Register and the Receipt Journal Report (select Transaction in the Report Mode parameter) for the period under consideration. The balance in the Receipt Journal Report should match the balance in the Receipt Register.
Reconcile Journal
Generate the Journal Entries Report-Summary by Account. The totals for each Accounting flexfield in the Sales Journal and the Receipt Journal should match the corresponding totals in the Journal Entries Report.
Reconciling the General Ledger Transfer Process
The General Ledger Interface produces an execution report that shows you the total debits and credits transferred from Receivables to the General Ledger Interface table. Compare this report to your Sales and Receipt Journal totals and verify that they match.
Note: Be sure to use the same General Ledger Date ranges for the two journals and your GL transfer. The following is a list of the Critical Reports required for Reconciliation between AR and GL 1. Journal Entries Report (AR) 2. Sales Journal by GL Account Report (AR) 3. Receipt Journal Report (AR) 4. AR Reconciliation Report (AR) 5. Account Analysis Subledger Detail-180 Char (GL) 6. Third Party Balance Report (New to R12) The Total Activity in a period is calculated as follows: Transaction Register for the Period (+) Adjustments Register for the Period (+) Rounding Differences for the Period (+) Credit Memo gain/loss for the Period (-) Invoice Exceptions for the Period (-) Applied Receipts Register for the Period (-) Un-Applied Receipts Register for the Period
Period close for all modules Reconcile customer balances
Period close for all modules

Payables 1. Complete All Transactions for the Period Being Closed 2. Run the Payables AutoApproval Process for All Invoices / Invoice Batches 3. Review & Resolve Amounts to Post to the General Ledger 4. Reconcile Payments to Bank Statement Activity for the Period 5. Transfer All Approved Invoices Payments, Reconciled Payments to the General Ledger 6. Review the Payables to General Ledger Posting Process After Completion 7. Submit the Unaccounted Transactions Sweep Program 8. Close the Current Oracle Payables Period 9. Accrue Uninvoiced Receipts 10. Reconcile Oracle Payables Activity for the Period 11. Run Mass Additions Transfer to Oracle Assets 12. Open the Next Payables Period 13. Run Reports for Tax Reporting Purposes (Optional) 14. Run the Key Indicators Report (Optional) 15. Purge Transactions (Optional)
Purchasing 1. Complete All Transactions for the Period Being Closed 2. Review the Current and Future Commitments (Optional) 3. Review the Outstanding and Overdue Purchase Orders (Optional) 4. Follow up Receipts-Check with Suppliers 5. Identify and Review Un-invoiced Receipts (Period End Accruals) 6. Follow Up Outstanding Invoices 7. Complete the Oracle Payables- Period End Process 8. Run Receipt Accruals - Period End Process 9. Reconcile Accounts - Perpetual Accruals 10. Perform Year End Encumbrance Processing. (Optional) 11. Close the Current Purchasing Period. 12. Open the Next Purchasing Period. 13. Run Standard Period End Reports (Optional)
Inventory/WIP 1. Complete All Transactions for the Period Being Closed. 2. Check Inventory and Work In Process Transaction Interfaces. 3. Check Oracle Order Management Transaction Process. 4. Review Inventory Transactions. 5. Balance the Perpetual Inventory. 6. Validate Work In Process Inventory. 7. Transfer Summary or Detail Transactions 8. Close the Current Oracle Payables and Oracle Purchasing Periods 9. Close the Current Inventory Period 10. Open the Next Inventory Period 11. Run Standard Period End Reports (Optional)
Order Management 1. Complete All Transactions for the Period Being Closed 2. Ensure all Interfaces are Completed for the Period (Optional) 3. Review Open Orders and Check the Workflow Status 4. Review Held Orders 5. Review Discounts 6. Review Backorders 7. Review and Correct Order Exceptions 8. Reconcile to Inventory 9. Reconcile to Receivables (Optional) 10. Run Standard Period End Reports
Receivables 1. Complete All Transactions for the Period Being Closed 2. Reconcile Transaction Activity for the Period 3. Reconcile Outstanding Customer Balances 4. Review the Unapplied Receipts Register 5. Reconcile receipts. 6. Reconcile Receipts to Bank Statement Activity for the Period 7. Post to the General Ledger 8. Reconcile the General Ledger Transfer Process 9. Reconcile the Journal Import Process 10. Print Invoices 11. Print Statements (Optional) 12. Print Dunning (Reminder) Letters (Optional) 13. Close the Current Oracle Receivables Period 14. Reconcile Posted Journal Entries 15. Review Unposted Items Report 16. Open the Next Oracle Receivables Period 17. Run Reports for Tax Reporting Purposes (Optional) 18. Run Archive and Purge programs (Optional)
Assets 1. Complete All Transactions for the Period Being Closed 2. Assign All Assets to Distribution Lines 3. Run Calculate Gains and Losses (Optional) 4. Run Depreciation 5. Create Journal Entries 6. Rollback Depreciation and/or Rollback Journal Entries (Optional) 7. Create Deferred Depreciation Journal Entries (Optional) 8. Depreciation Projections(Optional) 9. Review and Post Journal Entries 10. Reconcile Oracle Assets to Oracle General Ledger Using Reports. 11. Run Responsibility Reports (Optional) 12. Archive and Purge Transactions (Optional)
Projects 1. Change the Current Oracle Projects Period Status from Open to Pending Close 2. Open the Next Oracle Projects Period 3. Complete All Maintenance Activities 4. Run Maintenance Processes
5. Complete All Transaction Entry for the Period Being Closed 6. Run the Final Cost Distribution Processes 7. Interface Transactions to Other Applications (AP, GL, FA) 8. Generate Draft Revenue for All Projects 9. Generate Invoices 10. Run Final Project Costing and Revenue Management Reports 11. Transfer Invoices to Oracle Receivables 12. Interface Revenue to General ledger (Project Billing Only) 13. Run Period Close Exception and Tieback Reports 14. Change the Current Period Oracle Projects Status from Pending Close to Closed 15. Advance the PA Reporting Period (Optional) 16. Update Project Summary Amounts 17. Restore Access to User Maintenance Activities 18. Permanently Close the Oracle Projects Period (Optional) 19. Reconcile Cost Distribution Lines with General Ledger (Optional)
Cash Managment 1. Load Bank Statements 2. Reconcile Bank Statements 3. Create Miscellaneous Transactions 4. Review AutoReconciliation Execution Report 5. Resolve Exceptions on the AutoReceonciliation Execution Report 6. Run Bank Statement Detail Report 7. Run Transactions Available for Reconcilaition Report 8. Resolve Un-reconciled Statement Lines 9. Run the GL Reconciliation Report 10. Run the Account Analysis Report for the General Ledger Cash Account 11. Review the Account Analysis Report 12. Correct any Invalid Entries to the General Ledger Cash Account (Optional) 13. Perform the Bank Reconciliation
General Ledger 1. Ensure the Next Accounting Period Status is Set to Future Entry 2. Complete Oracle Sub-ledger Interfaces to Oracle General Ledger 3. Upload Journals from ADI (Applications Desktop Integrator) to Oracle General Ledger 4. Complete Non-Oracle Sub-ledger Interfaces to Oracle General Ledger (Optional) 5. Generate Reversal Journals (Optional) 6. Generate Recurring Journals (Optional) 7. Generate Mass Allocation Journals (Optional)
8. Review and Verify Journal Details of Unposted Journal Entries 9. Post All Journal Batches 10. Run General Ledger Trial Balances and Preliminary Financial Statement Generator Reports (FSGs) 11. Revalue Balances (Optional) 12. Translate Balances (Optional) 13. Consolidate Sets of Books (Optional) 14. Review and Correct Balances (Perform Reconciliations) 15. Enter Adjustments and / or Accruals and Post 16. Perform Final Adjustments 17. Close the Current Oracle Gneral Ledger Period 18. Open the Next Oracle General Ledger Period 19. Run Financial Reports for the Closed Period 20. Run Reports for Tax Reporting Purposes (Optional) 21. Perform Encumbrance Year End Procedures (Optional) Home Account Receivables Period Closing Process
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Reconcile customer balances

1.1 Use the Aging Report as of the last date of the prior month to get the outstanding opening balance. 1.2 Generate the Aging Report as of the last day of the month to get the month-end balance. 2.1 Use the Transaction Detail Report to identify invoices, debit memos, credit memos, deposits, guarantees, and chargebacks that increase the outstanding opening balance. 2.2 Use the Adjustment Register to identify any adjustments that affect the transactions for the month. 2.3 Use the Invoice Exception Report to reduce the outstanding amount where transactions do not update customers accounts. These transactions appear in the Transaction Register, but not on the Aging reports. 3.1 Use the Unapplied Receipt and Applied Receipt registers to identify the payments received from customers. These reduce the outstanding customer balances. 4. Use the AR Reconciliation Report to help you reconcile your accounts receivable activities. This report summarizes all customer, receipt, transaction, and account balances for the period you specify to simplify the internal reconciliation process.

Account Receivables

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Account Receivables

Posted Mon, 12/29/2008 - 11:56 by Anonymous

Payment terms @ http://www.oracleug.com/user-guide/order-management/payment-terms Accounting Rules & Invoicing Rule @ http://www.oracleug.com/user-guide/order-management/setup-steps-vi-payme...

Home Account Receivables Setting Up

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Transaction Batch Sources

AutoInvoice Processing Options Other Transaction Source tab details

Home Account Receivables Setting Up Transaction Batch Sources

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AutoInvoice Processing Options

Posted Mon, 10/05/2009 - 17:26 by Anonymous

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Other Transaction Source tab details

Standard Memo Lines

Define the following:

Transaction Batch Source

AutoInvoice system options

AutoInvoice Line Ordering rules AutoInvoice Grouping rules

Grouping Rules AutoInvoice Line Ordering Rules

Check the reference number in invoice Header.

AutoInvoice Line Ordering Rules

Home Account Receivables Setting Up

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Define receipt classes Define payment methods Define banks

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Receipt Classes & Payment Methods

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Posted Mon, 02/15/2010 - 15:14 by Anonymous

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Banks Window Reference Defining Bank Accounts

Home Account Receivables Setting Up Banks

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Oracle iStore Data Migration

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Banks Window Reference

Home Account Receivables Setting Up Banks

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Oracle iStore Data Migration

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Defining Bank Accounts

Bank Transaction Codes Bank Accounts Window Reference Payment Documents

Bank Transaction Codes

To define a bank transaction code:

1. Navigate to the Bank Transaction Codes window.

4. Enter the Code used by your bank.

5. Enter an optional description of the transaction.

Bank Accounts Window Reference

Operating Unit. Payables displays your operating unit.

Account Contact & Holder

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GL Accounts Region of the Bank Accounts Window

You cannot enter GL Account information for Supplier bank accounts.